QUESTION: We are shipping merchandise to a facility in China, and ship under EXW incoterms. The Chinese office has advised us that they would not be able to pay the carrier’s freight charge and insurance costs due to Forex control. Does this sound right to anyone in the industry? Because duties in China are paid […]
QUESTION: So we purchase material (ex-works) from another company. We are the Customer. another company ships us the purchased material. However, they refuse to put the foreign ship from address on the commercial invoice. The product in turn gets stopped by our broker because there is no ship from address listed. We have been going […]
QUESTION: Scenario: Company (A) is a US Distributer who utilizes offshore contract manufacturing for products and sells to a customer located in Grenada. In this scenario, the contract manufacturer Company (A) utilizes to service the customer in Grenada is located in Italy. The agreed upon Inco-Terms between Company (A) and customer is Ex Works Factory(Italy). […]
QUESTION: I understand that everyone should understand Incoterms (Procurement, Sourcing, Trade Compliance, Logistics). However, typically, who is ultimately responsible for deciding which Incoterm to use in a transaction, training functional areas on Incoterms, articulating the roles and responsibilities of the parties under an Incoterm and in the absence of an Incoterm in an agreement […]
QUESTION: Who is required to file the EEI in an FCA Incoterm transaction when it is a Routed Export Transaction – The FPPI or the USPPI? ********** Answers: Either FPPI or USPPI can file. It depends on the agreement with USPPI and FPPI. ********* The Foreign Trade Regulations do not take into account Incoterms. The […]
QUESTION: As per the U.S Census, Incoterms cannot be used to determine who is responsible for filing Electronic Export Information. The Foreign Trade Regulations do not support incoterms, and I understand that Incoterms isn’t a US laws, but on how you can understand “Export Clearance” mentioned on incoterms? ========== You can’t. Commercially speaking, if it is your responsibility […]
QUESTION: Does anyone ship low value samples internationally using Incoterms DDP? Our Customers would like samples delivered to their door duty paid. If yes, do you use a courier or third party to carry out the transaction? Does anyone screen low value, low risk samples exported to non-sanctioned destinations? ************* Answers: More details are needed […]
QUESTION: INCOTERMS are mainly used for international trade, therefore is it wrong to apply them for European transactions?. My company has domestic trade, European operations and with other countries out of Europe. Should we use a different formula for each one, in order to define how the transport will be done and who will held […]
QUESTION: We are trying to better understand the GRWR SAP Percentages and why they vary by Incoterm. These are set up for our Intercompany Stock Transport Orders Only and affect the Export Declaration Value. They are set up by Purchasing Org. Can someone please help me understand? ==================== ANSWERS: Makes no sense at all what […]
QUESTION: According to the Incoterms 2010 book (published by the International Chamber of Commerce) neither the buyer nor the seller holds any obligation to make the contract of carriage under EXW terms. This seems odd to me as I would expect it to be the responsibility of the buyer to arrange and pay for freight […]
QUESTION: Am seeing shipping personnel in our company use the following Incoterms interchangeably for domestic shipments where the customer requests we move the freight to them. It seems to me that that FCA should not be used as the seller would not be responsible for paying the cost of carriage to bring the goods to […]
QUESTION: We buy products from US suppliers but the goods are actually DDP shipments from overseas. What security measures we should take, from CTPAT prospective, we should take with these suppliers? Are we as a consignee, not the IOR, responsible for validating the overseas suppliers that we don’t know about? ========== Answers: Interesting questions and […]
