QUESTION: If a customer initially places an order under FCA (Collect) terms but then circumstances dictate a change to arrangements and the seller ends up contracting the carriage and agreeing to subsequently bill the seller for freight, does this change the terms? My understanding is that the term is based on whoever makes the contract […]
QUESTION: Asking for a friend… We see purchase orders, invoices, and even agreements where the incoterm stated does not align with the transfer of risk. Many of these agreements are intended with the shipper to deliver to the buyer’s final warehouse location by arranging door to door transportation, but risk to transfer outside the importing […]
QUESTION: Can the membership advise who should be listed as the USPPI in the following scenario? US company A sells goods to US company B basis FOB Incoterms®; company A loads the goods onto a vessel at a US export port. Company B arranges the vessel freight for onward movement to foreign destination for further […]
QUESTION: Recommendation for Incoterms for DELIVERY at the border? Intent is for a foreign entity to not own goods in the US, MX, or CA due to tax consequences. Seller A in Foreign Country A buys goods from Foreign Country B and manufactured by MX supplier B. B is non-related. A sells to related parties […]
QUESTION: What incoterm does the membership recommend or works best for US- domestic transactions for freight collect/seller door pickup or freight prepaid/ship to buyer’s address? I’m seeing a lot of contracts written for “US” and its territories as DDP or DAP or EXW. If freight collect, why EXW versus FCA? EXW means the buyer’s carrier […]
QUESTION: Here’s a question for our Incoterms experts. We had a shipment from the US to MX, and the Incoterm was DAP-customer’s door. Under DAP terms, the buyer is responsible for the customs clearance. However, the buyer’s broker took a very long time to perform the clearance, racking up high demurrage costs. Who is responsible […]
QUESTION: Where does the responsibility for INCOTERM Training fall in most companies – logistics, procurement, sourcing, legal or trade compliance? I assume procurement/sourcing because they are the dept that negotiates the terms of sale, pricing etc. I could see logistics but the logistics team really just follows the INCOTERM language in the agreement when it […]
QUESTION: We export product from Canada and the US to various markets globally. In the cases of those with FCA or FOB origin port (in North America), where the customer makes their own ocean bookings and we deliver to the port based on that booking, who is responsible for the shippers letter of instruction or […]
QUESTION: There is a company in the US who is leasing iso tanks to our company in the US. They are using a manufacturer in China to produce these tanks. We will be the IOR though and take over with pick up in China. We are leasing the tanks, the terms of the agreement is […]
QUESTION: Can anyone explain why DAP Laredo would be preferable to FCA Laredo for shipments to my maquila? My MX broker is insisting we send all goods to the Laredo border under DAP terms, but is unable to explain why. Only that it is somehow advantageous from a Mexican import perspective. =============================================== Answers: Assuming you […]
QUESTION: How do we calculate CIF value if we’re shipping under our global insurance policy (not insurance specifically obtained for the shipment at hand)? What’s the value of the insurance? A percentage of the premium? A percentage of the shipment value? =========== Answer: You would need to work with your finance and cost accounting team […]
QUESTION: Before you respond, This is more of an academic question for those interested to better understand and learn about trade and logistics. I know the intended meaning of the phrase “free domicile” – the exporter/shipper in the exporting country is responsible for all transportation and other charges for the goods in the country of […]
