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 […]
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 […]
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 […]
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 […]
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) […]
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, […]
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 […]
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: https://www.icpainc.org/wp-content/uploads/2023/03/Tipos_Incoterms_2020.pdf 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 […]
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 […]
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 […]
