Question: We have entered into a multi-tiered sale transaction: we sell our product to an unrelated middleman, who then sells it to an unrelated importer in a third country. We sell to the middleman under DAP – Port of Entry, booking and paying for international freight and controlling the movement of the goods. The middleman […]
Question: We are involved in a two-tiered sales transaction. A UK company related to an Indian manufacturer and exporter buys product from the related Indian company under FCA-Dock INCOTERMs. Our supply agreement with the UK company clearly states that they sell the same product at a markup to us under FCA-Mumbai INCOTERMs. The Indian company […]
Question: We are currently facing a situation where our customer is unwilling to sign a POA for export filing purposes. As an alternative, we are considering allowing the customer to utilize FCA (our warehouse), enabling them to file their own AES using their U.S. Tax ID. Under this arrangement, the customer would be responsible for submitting […]
Question: Our supplier has requested that we modify their contractual Incoterms from DAP to FCA. They have encountered some problems with shipments being delayed at the border, which has affected delivery times. Additionally, they are having trouble registering in the CARM portal, which is essential for shipping to Canada. If we switch from DAP to […]
Question: I have a commercial invoice from a foreign supplier to the U.S buyer. The terms are DAP. Broken out separately is a DHL Express charge. Upon further investigation I found out that the charges are all shipping and transportation cost from the foreign DHL warehouse to the buyer. These are transportation and freight charges […]
Question: I would imagine the best Incoterms® for buyers would be DDP, DAP, and CFR or CIF (depending whether of not buyer already carries insurance). Best for sellers would be EXW, FCA, or FAS. Could someone tell me if there is a reason for different orders of preference? Also, is there a way for CFR […]
Question: We are drafting an agreement between us and another party. I am having an internal discussion with some folks from legal and sourcing regarding what is covered in the cost of shipping. They are taking the position that shipping costs means “all costs related to getting the goods from foreign origin to US destination”. […]
Question: Hi ICPA Members, We are currently shipping goods to Canada under Incoterms DDP to both external and internal customers. We aim to develop a Standard Operating Procedure (SOP) for our Customs Broker to accurately calculate deductions for duties and tariffs to be assessed on the Customs value. If anyone has experience in a similar […]
Question: Is anyone familiar with mDDP term for importation to the US? What are the pros and cons? Does it really give savings on overall landed cost? Any experience associated with this practice is appreciated. We are the importer, but our company is considering utilizing the mDDP and let our vendor take over the customs […]
Question: When members of ICPA are involved in determining their pricing vis-a-vis INCOTERMs, which functional depts do they involve when determining their DAP price when they are the seller/exporter? I assume for the seller/exporter, the EXW-seller warehouse price, FOB-seller warehouse price, FCA-port of export price, DAP-port of import price and DAP-buyer’s warehouse pricing, that value […]
Question: We entered into an agreement with a customer to ship our pharma product DAP-Customer warehouse. Most know that a DAP price includes the cost of material, packaging and any international transportation to the final customer’s warehouse. After having some discussions with the commercial team, I learned that the price in the agreement, $XX.XX DAP, […]
Question: Our agreements with buyers in other countries is DAP-Port of Arrival. However, the DAP price we sell the material to the importer does not include freight costs. I understand that DAP-Port of Arrival means that the exporter is responsible for paying international transportation to the port of arrival in the country of import. If […]
