QUESTION: We are trying to better understand the GRWR SAP Percentages and why they vary by Incoterm. These are set up for our Intercompany Stock Transport Orders Only and affect the Export Declaration Value. They are set up by Purchasing Org. Can someone please help me understand? ==================== ANSWERS: Makes no sense at all what […]
QUESTION: According to the Incoterms 2010 book (published by the International Chamber of Commerce) neither the buyer nor the seller holds any obligation to make the contract of carriage under EXW terms. This seems odd to me as I would expect it to be the responsibility of the buyer to arrange and pay for freight […]
QUESTION: Am seeing shipping personnel in our company use the following Incoterms interchangeably for domestic shipments where the customer requests we move the freight to them. It seems to me that that FCA should not be used as the seller would not be responsible for paying the cost of carriage to bring the goods to […]
QUESTION: We buy products from US suppliers but the goods are actually DDP shipments from overseas. What security measures we should take, from CTPAT prospective, we should take with these suppliers? Are we as a consignee, not the IOR, responsible for validating the overseas suppliers that we don’t know about? ========== Answers: Interesting questions and […]
QUESTION: We recently received a memo from USFIA(US Fashion Industry Association) about A recent settlement in a False Claims Act case raises questions about the responsibilities of a DDP purchaser vis-à-vis the DDP seller’s compliance with the customs laws. Member companies who purchased on DDP terms should examine their processes in light of this settlement. […]
QUESTION: Regarding an Ocean Bill of Lading, when the incoterms are EXW and a US agent is coordinating the export on behalf of the foreign buyer, who should be in the Shipper/Exporter box on the BoL? I have found a recent shipment listing us, the manufacturer/seller, as the Shipper/Exporter, however we are only preparing the […]
QUESTION: I’d like feedback from the membership on how you are handling Incoterms and risk of loss. The new revenue recognition standard under GAAP has caused our Legal and Finance teams to get involved in Incoterms more than before. We use Incoterms for all shipments (domestic and international). The primary issue today is that we […]
QUESTION: We sell and ship under CIF Incoterms® to a customer in the Bahamas. Our invoice has the price of the goods and a line item price for freight. The customer has asked us to change terms to EXW instead because they have to pay duty on the CIF value. They claim that if […]
QUESTION: Question: For customs clearance, should A put FOB cost or selling price (DDP) on the commercial invoice? A: Seller in US (IOR) B: Vendor in China C: Buyer in US Terms of sale between A and B are FOB China shipping port. Terms of sale between A and C are DDP. A asks […]
QUESTION: My concern of using DDP shipments for US Export is that the USPPI now becomes the IOR in the foreign destination and is responsible for clearance. This creates risk for the USPPI from a compliance perspective because this would require a Foreign Power of Attorney (FPOA) to a broker in the foreign destination to […]
QUESTION: I understand that the Incoterms and the title transfer are not related and should be listed separately in the contract. I have a situation that I need a feedback from the ICPA members. There are 3 parties in the transaction – the U.S seller, IE company, and UK company. All partied are related. The […]
QUESTION: What incoterm (part 1 and part 2) should be used when importing to US from Mexico which puts the Mexican Brokerage cost as the vendors responsibility? ========== Answers: There are various scenarios you could use here: FCA Nuevo Laredo, Mexico – vendor delivers to the yard on the Mexican side of the border, vendor is […]
