QUESTION: We often run into situations where we have to ship products and cover all freight, taxes, duties etc. (essentially DDP). We understand that in many countries, our company cannot act as the importer of record. In these cases we ask our forwarder to assist and stress that we are not to be listed as […]
QUESTION: Will Incoterms 2020 be released in 2020 and effective Jan. 1, 2021? I am reading some publications online stating they would be effective Jan. 1, 2020, but I believe Incoterms 2010 were not effective until Jan. 1, 2011. =========== Answers: Incoterms 2020 Rules will come into force on January 1, 2020, and ill be […]
QUESTION: Does anyone know what changes are expected when the INCOTERMS are updated in 2020? ************ Answers: Work in progress, some press outlets have reported items, but no need to rush as you can continue to use Incoterms 2010 until you agree with your business partners to change over. Just wait until the new 2020 […]
QUESTION: For shipments from a manufacturer in Puerto Rico which are sold to a US entity under “EXW San Juan” terms, who is responsible for filing the EEI? The US customer has selected the freight forwarder, who is contacting us asking for either the ITN# or to provide them with written authorization to file 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: 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 […]
