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 […]
Question: We are looking to get feedback on how other companies train their sales people and product managers on Incoterms and what has been successful. We have tried a few different things and we still have individuals that struggle to wrap their heads around these terms. We have tried “Cheat sheets” and training events but […]
Question: Does your company use either an Incoterm policy and/or guidance sheet? Recently we ran into an issue where the sales team accepted an order under incoterms where our company would act as importer into a country that we are not set up to act as such. I’m wondering what is best to prevent this […]
Question: What issue could arise from using a DDP Incoterm while specifying in the sales contract that the title transfer occurs when goods are picked up by the first carrier at the origin? Answer 1: Hello, Couple of thoughts reference your question.d Most important to list a named destination, “Incoterm 2020 DDP Roll Tide, AL”. […]
Question: We are entering into an agreement with a company in Japan. We do not have an entity in Japan to perform any customs clearance. We have requested to use DAP terms. The company in Japan is requiring DDP terms because they don’t want to pay the customs duty and import fees. They also have […]
Question: Wondering what the perspective is of other TC folks with regard to the price of goods sold under DAP or DDP INCOTERMS. Do other companies assume that the price they are quoted for material includes freight and or freight and customs clearance + duty and taxes if the agreement they have states the INCOTERM […]
Question: We have a two tiered sales transaction in which we buy goods in the country of manufacture and sell the same goods in the couutry of manufacture. Our sales and contracts teams have used the same INCOTERM with the same Named Place in the two different sales agreements – 1) our purchase from the […]
