“Our Company” has been struggling with the following real business transaction. Can someone provide a referral or other substantive illustrations of the risks involved in conducting the following international transactions? “Our Company” manufactures products in another country – in this case the product is designed only to work with the customer’s product – “The Buyer” […]
The majority of our international sales are on EXW or FCA basis. With these terms, we have no idea if the customers are actually taking the product out of the US since many of these customers claim to consolidate goods from several vendors and re-sell the goods to the international market (therefore we are not […]
We are exploring a Customs and Tax solution for our sales from China whereby we would have intercompany sales under the Term “FOB Vessel 12 miles off the coast of China”. Twelve miles off of China is considered outside China therefore a transfer of risk and ownership occurs outside of the China jurisdiction. My question […]
On “Free House Delivery” shipments (origin pays all charges): From a compliance perspective, how do other companies handle the classification and Customs clearance on: 1. Under $200 shipments that will be Sectioned 2. Between $200 and under $2000 that will be an Informal Entry 3. Over $2000 that will be a Formal Entry. 1. Currently […]
Comments about Inco Terms
Our vendors from India ship samples via air freight and show the Incoterms on the invoice as C&F but don’t include the freight in the invoice. They say they can’t use FCA on the invoices because of regulations from Indian Customs and they are required to show C&F. Does anyone else have experience with this?
We have several customers in Venezuela and they are insisting we quote on a CIF, (named port in Venezuela) basis. The catch is they want to use their own Freight Forwarder and they will inform us of the main carriage costs and insurance costs at the time of shipment. We are supposed to add this […]
We traditionally ship products from our U.S. DC’s to international markets using CIF Incoterms. However, some internal business units want transfer of risk of damage and loss to occur at our DC’s door (e.g. ex works). The challenge we face is that our company still wants to arrange for and pay the transportation costs from […]
Question: My question concerns paying ocean freight for international customers located in countries that assess duties on the CIF price and then billing them separately for the freight. Does anyone know of any legitimate reason that a US exporter would structure a sale this way? Or is helping the customer minimize duties the issue?
I would like to know how other members handle the deduction of international freight and insurance in CIF imports. The Customs laws are clear that actual charges must be deducted and that documentary proof must be maintained to support the deduction. The Informed Compliance Publication on international freight says, “Commercial documents to and from the […]
The players: Company (DS) is a domestic seller in the U.S. who utilizes offshore contract manufacturing for products and sells to, among others, domestic buyers Company (US) is a domestic buyer of products – the domestic customer Company (CM) is an offshore contract manufacturer INCOterm: EXW or FCA The scenario…who is the importer of record […]
We placed a purchase order with a vendor in the U.S. The terms of the contract with our vendor are DDU Freiberg, Germany. We have a purchase order for these items from our affiliates in Germany and terms on the purchase order are also DDU Freiberg. Would the USPPI in this case be ourselves or […]
