QUESTION: With the implementation of ASC 606 the standard for recognizing revenue has changed from “risk of loss” or “title transfer” to when “the customer obtains control of that asset”. As a result, while shipping terms play a role in determining when to recognize revenue they are only one consideration. Right now revenue recognition in […]
OT Fact Sheet: Origin Certification Requirements QUESTION: Hi INCOTERMS experts. We are negotiating a DAP INCOTERM for an import with the named place being our final destination warehouse. The seller is adding the following language: “Expenses at the airport, borne by the importer” I can understand why they might want to add this – if […]
OT Fact Sheet: Origin Certification Requirements QUESTION: I’m being asked to provide an incoterm solution that allows the shipper to retain the responsibility, shipping cost, and in-transit risk, while allowing the title to transfer once the product is shipped. Essentially what we are looking for DAP (Shippers Facility for purposes of title transfer). I’m not […]
QUESTION: I am in a situation where my company is exporting pharmaceutical clinical trial materials that were obtained free of charge and are being exported to global locations. Because these samples are not purchased and my company is not selling them to the global locations, I am not sure how to assign the appropriate INCOTERM. […]
QUESTION: I’m being asked to provide an incoterm solution that allows the shipper to retain the responsibility, shipping cost, and in-transit risk, while allowing the title to transfer once the product is shipped. Essentially what we are looking for DAP (Shippers Facility for purposes of title transfer). I’m not sure if this is a viable […]
QUESTION: I am in a situation where my company is exporting pharmaceutical clinical trial materials that were obtained free of charge and are being exported to global locations. Because these samples are not purchased and my company is not selling them to the global locations, I am not sure how to assign the appropriate INCOTERM. […]
QUESTION: My procurement and sourcing teams are working with vendors to buy equipment and machinery that will be purchased by our US entity for domestic use and by our International Subsidiaries for international transactions. They are drafting contracts that incorporate INCOTERMS into both international and domestic transactions. Do you foresee any issues using INCOTERMS for […]
QUESTION: We are purchasing costly equipment subject to regular and 301 duties. Most of the contracts were negotiated under DAP but a couple are under DDP. Since we are going to pay for the freight because it was included in the quote, can we have the supplier identify the cost of the freight separately on […]
QUESTION: We have a plant in Europe that manufactures product we sell in the US. We take the orders from the US customers in the US and have been shipping from our warehouse in the US. To increase efficiency, we are going to be drop shipping directly from our overseas plant to the end user […]
QUESTION: I am see a lot of conflicting information on insurance requirements under DAP incoterm and am looking for answer on liability. We shipped an order to Canada, customer instruction was prepay freight and add. Customer did not specifically request insurance. We shipped DAP via our chosen Courier- no insurance. Under DAP terms, we as […]
QUESTION: What is the key difference between Incoterm EXW and FCA for a domestic shipments? We would be the buyer in this scenario (using our own carrier), but are there much difference considering there is no export clearance? As the buyer, is it more in my favor to suggest FCA(My location)? ========== Answers: The difference […]
QUESTION: What is the difference between “place of delivery” and “place of destination/arrival”. · Delivery: The point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer · Arrival: The point named in the Incoterm to which carriage has been paid What is […]
