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 […]
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 […]
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 […]
QUESTION: Incoterm ICC Book conflicts with published Incoterms online. Order CIP to inland destination city of TUMELTSHAM. Demurrage charged. Unknown reason. Could be customer appointment. Who pays demurrage? ICC book shows Buyer. Customer protesting. **************** Answers: CIP is one of the Incoterms where the responsibility for risk and responsibility for costs transfer at different points in […]
QUESTION: I have a scenario that goes like this: The buyer wants the seller to own the goods until it hits the buyers warehouse in the US. The buyer wants to handle the shipping, import clearance and transportation delivery. The buyer wants the seller to take out insurance on the goods in transit as they […]
QUESTION: If a customer initially places an order under FCA (Collect) terms but then circumstances dictate a change to arrangements and the seller ends up contracting the carriage and agreeing to subsequently bill the seller for freight, does this change the terms? My understanding is that the term is based on whoever makes the contract […]
QUESTION: Asking for a friend… We see purchase orders, invoices, and even agreements where the incoterm stated does not align with the transfer of risk. Many of these agreements are intended with the shipper to deliver to the buyer’s final warehouse location by arranging door to door transportation, but risk to transfer outside the importing […]
