We currently ship within the UK and also export to EU and non-EU countries. We use Ex Works for all export sales quotes for our products because at the quote stage we do not know what the delivery scenario will be and even if we did we can’t know what the transport price might be many months later at point of export when the customer finally places an order. So, the terms are agreed and confirmed with the customer once we have received the Sales Order when any one of the following export scenarios could apply:
We arrange transport to a designated place in the buyer’s country — this could be to port/airport/terminal excluding insurance, customs clearance, import duties and taxes (customer arranges broker and clearance) — Delivered at Place (DAP) or Delivered at Terminal (DAT)
We arrange transport to customer’s address — including customs clearance, import duties and taxes (our haulier arranges brokerage) — Delivered Duties Paid (DDP)
EU customer arranges transport (so collects from our premises) to address within EU — no customs clearance or docs required (currently) — Ex Works (EXW) or Free Carrier (FCA) our premises
Customer arranges transport (so collects from our premises) to an address outside EU (and to the EU27 if Brexit happens). We provide the commercial invoice and certificate of origin if required and the buyer’s haulier/broker arranges customs clearance and pays import duties and taxes — EXW OR FCA (our premises).
So, whatever the scenario this updated Incoterms® Rule is then stated on our sales order confirmation as this is confirmation of the terms of our contract to supply. It will also appear on the commercial invoice. Can you confirm that this procedure is ok and that we are commercially protected doing it this way?
Also, we need some clarification for scenario 4:
If FCA, do we have to provide customs declaration (other than commercial invoice) and pay import duties and taxes?
If EXW, do we then need to receive copy of their export declaration and the transport doc (AWB/CMR) as proof of export for HMRC reporting?