QUESTION: I am see a lot of conflicting information on insurance requirements under DAP incoterm and am looking for answer on liability. We shipped an order to Canada, customer instruction was prepay freight and add. Customer did not specifically request insurance. We shipped DAP via our chosen Courier- no insurance. Under DAP terms, we as […]
QUESTION: What is the key difference between Incoterm EXW and FCA for a domestic shipments? We would be the buyer in this scenario (using our own carrier), but are there much difference considering there is no export clearance? As the buyer, is it more in my favor to suggest FCA(My location)? ========== Answers: The difference […]
QUESTION: What is the difference between “place of delivery” and “place of destination/arrival”. · Delivery: The point in the transaction where the risk of loss or damage to the goods is transferred from the seller to the buyer · Arrival: The point named in the Incoterm to which carriage has been paid What is […]
QUESTION: How do you combine Incoterms and export regulations in order for the business to understand that the regulatory requirements are not dependent on Incoterms? %%%%%%%%%% ANSWERS: If your selling to a customer outside the USA, no matter what INCO term you apply, your export responsibilities and obligations are essentially the same. The trigger for […]
QUESTION: I would like to get the memberships input on incoterms and sales terms on PO. We use incoterms guidelines on PO and for revenue recognition. My concerns are to what extent we include incoterms in our sales and purchases and how we include them – and whether and when their inclusion results in a […]
QUESTION: Our customer in China received a FCL as DAP and already cleared customs and paid taxes/duties. I know Incoterms don’t address title transfer/ownership but since the customer already has possession and paid customs clearance, do they own the goods? We want to take the product back and store it in a non-bonded warehouse and […]
QUESTION: Ex-works to a foreign buyer. We have a Canadian buyer who buys our products on an ex-works basis from our US plants. We “know” that our product is exported to Canada. Our product is building supplies. Do we have any export compliance obligations/risks/liabilities on this type of a transaction? =========== Answers: Sounds like you […]
. US company to Customer in Mexico – Direct US company pays for delivery to US side of the border, customer in Mexico clears customs and pays for delivery to destination in Mexico. Is FCA (US border city) or DAP (US border city) more appropriate? 2. US Company to customer or US company’s subsidiary in […]
QUESTION: We have two scenarios for shipments from US to Mexico and are trying to determine the correct Incoterms to apply. 1. US company to Customer in Mexico – Direct US company pays for delivery to US side of the border, customer in Mexico clears customs and pays for delivery to destination in Mexico. Is […]
QUESTION: We are a US company buying from US supplier. The supplier’s material is manufactured in the West Indies. This would be a small package delivery with an express courier and we are using our collect number, which I would put on PO- FCA/West Indies. Question I have is that our supplier insists that EXWORKS […]
QUESTION: The buyer arranged all transit for the cargo with our sales person, a routed transaction. I do not have a POA to file for the EEI, but I noticed the labels from the carrier have incoterms DAP 2010. Now because the buyer is paying for the freight and arranging for carriage I do not […]
QUESTION: Is it recommended or required to amend existing contracts From INCOTERMS® 2010 To INCOTERMS® 2020 =========== Answers: It depends on if you find the 2020 rules better suited or not. If you don’t amend, the rule as defined in whatever edition that is referenced still stands. =========== It is recommended but not required. All […]
