Questions and answers about INCOTERMS

  • different incoterms indicated on BOL and CIV

    Question: Hi ICPA, We had a product that went bad…  shows incoterm CIF on the BOL, but CFR on the CIV. The product went bad somewhere, Which Incoterm should take precedence, what’s on the BOL or the CIV? The insurance company is pushing for CFR, of course. Answer 1: A B/L is not sufficient to confirm terms […]

  • Question about EXW with no named place

    Question: Searched for an answer to this question but cannot find an answer, so hoping our Incoterm experts can help. We have an export shipment that specifies EXW but does not specify a named place. Yes, a named place should have been specified but it was not. In this situation, when/where do the responsibilities transfer […]

  • Demurrage charges

    Question: We got an import under DAP My plant. We cleared customs and even though we cleared customs, customs decided to do inspection after clearance. This created extra carrier charger and demurrage. The shipper doesn’t want to pay for charges because states this is due to customs inspection. Per incoterms under DAP, we cleared customs, […]

  • EXW Invoicing Upon Batch Release

    Question: We have a partner manufacturer in the UK that wants to invoice us under EXW terms upon batch completion (we operate in the pharmaceutical sphere) – is this legitimate?  We were under the impression that invoicing occurs during the goods-issue process when product is departing the origin WH.  There could easily be 2 weeks […]

  • Incoterms with variants

    Question: We are a chemical importer and a distributor in the U.S.   There is a customer who would like to use EXW from Japan; They pay for the freight from the origin to the final destination and clear customs.   However, in this particular case, due to a certain restriction we have with EPA TSCA regulations, […]

  • Who is Responsible for Cross-Border Fees – DAP Las Colinas, Mexico

    Question: I have a question regarding the payment of cross border fees on DAP Incoterms.  I would like to know which party, the Buyer or Seller, is responsible for covering these fees? According to the agreed upon terms, the Seller is responsible for delivering the goods to the designated place. However, they are not obligated […]

  • Definition of Customs Clearance

    Question: Is there a specific definition for “customs clearance”. In addition to the process of making entry and clearing goods, paying brokerage fees, does customs clearance include the payment of any duties and taxes and fulfilling OGA regulatory requirements? We have an exporter that is pushing back on our request that they cover the cost […]

  • Incoterm DPU and bonded warehouse

    Question: We will be sending product to a bonded warehouse in Japan.  We have a sales broker we are working with who will be acting on our behalf and performing all warehousing duties (unloading, etc).  The sales broker will also be handling customs clearance and delivery to the end user. My company will own the […]

  • incoterms for rail shipments to Mexico under rule 11

    Question: I want to clarify which is the most appropriate Incoterm and better system set up for shipments to Mexico that are shipped via rail under rule 11 (when rail bills US shipper for US portion of the freight and Mexican receiver for freight within Mexico). Per our T&C title transfers according to risk transfer […]

  • ocean shipment to Puerto Rico

    Question: We are being asked to ship some products to PR via ocean.  Our commercial team already signed the contract. The contract states that the buyer will select the FF to PR. The contract states the INCOTERM will be FOB-Destination (into PR) and the mode will be air.  We were given an SLI to complete […]

  • FOB vs. FCA for LCL Ocean Freight

    Question: Which INCOTERM is better for LCL ocean freight that is delivered to a consolidator: FOB or FCA [Named Consolidator]?  A member of my supply chain team feels strongly that if FOB is used for LCL ocean cargo, the buyer will not be responsible for the cargo until it is loaded on the vessel. I […]

  • Incoterms CPT vs. DAP

    Question: I conducted an internal Incoterms(R) training recently and the question came up about the difference between CPT and DAP. The question raised was centered on when risk of loss transfers from seller to buyer.  The argument was that CPT would be the better choice between the two as the risk of loss transfers when […]