Questions and answers about INCOTERMS

  • DDP Shipment to Colombia

    Question: We want to ship some equipment from the US to Colombia.  I was advised by the sales team that the cost of freight, customs duties, broker fees, VAT etc. were to be paid by our US entity. To me, the appropriate INCOTERM would be DDP-Colombian factory address, however, DDP requires our US entity to be […]

  • FCA-Transportation mode responsability

    Question: Hello Members, We have a customer with an FCA Incoterm, with delivery at seller facility, we had in the past some issues with the choice of the type of transportation (air instead of road),  I am aware that our responsibility is limited by the preparation of export documents (Duties and taxes, customs clearance fees) […]

  • FCA vs. FOB for LCL Shipments

    Question: There seems to be a preference at my company to use FOB Origin Port for all ocean shipments, whether FCL or LCL. Since LCL freight is delivered to a consolidator first, it seems more accurate to use FCA Named Consolidator. Our supplier contracts align title transfer and risk of loss to the stated INCOTERM, […]

  • Incoterms Question

    Question: If we give our customer, our Fed Ex account number to ship back a unit that needs to be repaired, and the freight/customs fees for the import to USA are going to be charged to that account, are the Incoterms DDP? Answer 1: I would not give your account NUMBER. I would make them […]


    Question: Scenario:  Seller (US) charges buyer for the freight costs Seller ships product under DAP destination (door to door) (UK) Are the freight costs agreed upon at the time of sales transaction to be indicated on the commercial invoice used for destination customs clearance? Answer 1: Entered valuation differs among countries. To avoid having to […]

  • Spanish version of INCOTERMS

    Question: Can anyone share a Spanish version of the INCOTERMS and the relevant roles and responsibilities of the seller/exporter and buyer/importer? Answer 1: See in this link: Answered by: CYNTHIA MCBRIDE – cynthia.mcbride1@ge.comTitle: GE HITACHI NUCLEAR ENERGY AMERICAS LLC, Company: GE HITACHI NUCLEAR ENERGY AMERICAS LLC Answer 2: Incoterms is not free – in […]


    Question: We are negotiating INCOTERMS with a foreign importer (we export from the US) and the importer wants the INCOTERM to be CIF.  In principle, we do not disagree but wonder if the ICPA community can enlighten us on some drawbacks. Some issue we are thinking about are additional storage and freight costs incurred for […]

  • Incoterms

    Question: Seller in GB wants to ship direct to customer in U.S.  The seller’s parent company is located in the U.S. and wants to be the IOR . Is it okay for the Seller in GB to consign the shipment to their parent company in the U.S. but ship direct to the customer in the […]

  • CIP vs CIF

    Question: Working on a global policy on the correct incoterms to use for certain scenarios. I am getting a lot of pushback on which incoterm is appropriate for direct customer containerized export sales. My thought is to use CIP with the named destination as the POD because the risk transfers when it is loaded at […]

  • INCOterms & Risk & Tax Implications

    Question: In 20+ years of using Incoterms, including attending a Frank Reynolds training once-upon-a-time and walking away confident that I was/we were using as they were intended, this last year has given me more than I’d like to think about.  Transfer of risk and transfer of title are different from one another with the transfer […]


    We have an export scenario from Spain to Chile in which the vendor requested the purchase be made under EXW INCOTERMS.  We are  handling and paying for the transportation and logistics and choosing the Spanish freight forwarder. We advised our internal procurement and sourcing teams as well as the Spanish vendor that we need to […]

  • Incoterms (Risk Versus Insurance)

    QUESTION: Who is responsible if there is a mishap during transport when transfer of risk indicates the seller, but insurance is “negotiable”, and we have insurance? Case in point: We buy from a foreign seller with terms DAP buyer’s ( our) warehouse. According to DAP, insurance is negotiable. So normally if something occurs, seller is […]