QUESTION: I had a discussion with a co-worker about the responsibilities of the seller in an ExW transaction. She said that we don’t use ExW as a buyer because the seller does not have to provide commercial invoice, packing list and other documents as the definition states: EXW – “The buyer (not the seller) is […]
QUESTION: If Importer buys product FOB Origin point, and handles all transportation, can the origin shipper put on a hold on freight delivery upon arrival? I’m being told factory is holding release of freight on arrival due to lack of payment. ========== Answers: Absolutely. It has nothing to do with your INCOTERMS but with the […]
QUESTION: I had a discussion with a co-worker about the responsibilities of the seller in an ExW transaction. She said that we don’t use ExW as a buyer because the seller does not have to provide commercial invoice, packing list and other documents as the definition states: EXW – “The buyer (not the seller) is […]
QUESTION: Would the community be able to provide some insight into the proper Incoterm for shipments where the seller pays all origin charges except for the inland freight? The buyer then assumes responsibility for the inland freight and all charges from Ocean Freight to the Delivering/Unloading. Neither EXW nor FOB are a perfect match so […]
QUESTION: We are shipping merchandise to a facility in China, and ship under EXW incoterms. The Chinese office has advised us that they would not be able to pay the carrier’s freight charge and insurance costs due to Forex control. Does this sound right to anyone in the industry? Because duties in China are paid […]
QUESTION: So we purchase material (ex-works) from another company. We are the Customer. another company ships us the purchased material. However, they refuse to put the foreign ship from address on the commercial invoice. The product in turn gets stopped by our broker because there is no ship from address listed. We have been going […]
QUESTION: Scenario: Company (A) is a US Distributer who utilizes offshore contract manufacturing for products and sells to a customer located in Grenada. In this scenario, the contract manufacturer Company (A) utilizes to service the customer in Grenada is located in Italy. The agreed upon Inco-Terms between Company (A) and customer is Ex Works Factory(Italy). […]
QUESTION: I understand that everyone should understand Incoterms (Procurement, Sourcing, Trade Compliance, Logistics). However, typically, who is ultimately responsible for deciding which Incoterm to use in a transaction, training functional areas on Incoterms, articulating the roles and responsibilities of the parties under an Incoterm and in the absence of an Incoterm in an agreement […]
QUESTION: Who is required to file the EEI in an FCA Incoterm transaction when it is a Routed Export Transaction – The FPPI or the USPPI? ********** Answers: Either FPPI or USPPI can file. It depends on the agreement with USPPI and FPPI. ********* The Foreign Trade Regulations do not take into account Incoterms. The […]
QUESTION: As per the U.S Census, Incoterms cannot be used to determine who is responsible for filing Electronic Export Information. The Foreign Trade Regulations do not support incoterms, and I understand that Incoterms isn’t a US laws, but on how you can understand “Export Clearance” mentioned on incoterms? ========== You can’t. Commercially speaking, if it is your responsibility […]
QUESTION: Does anyone ship low value samples internationally using Incoterms DDP? Our Customers would like samples delivered to their door duty paid. If yes, do you use a courier or third party to carry out the transaction? Does anyone screen low value, low risk samples exported to non-sanctioned destinations? ************* Answers: More details are needed […]
QUESTION: INCOTERMS are mainly used for international trade, therefore is it wrong to apply them for European transactions?. My company has domestic trade, European operations and with other countries out of Europe. Should we use a different formula for each one, in order to define how the transport will be done and who will held […]
