Use of the Incoterms registered trademark

7 August 2012

We have a letter of credit citing Incoterms® 2010 with the circled R trademark indicator, but unfortunately have discovered that one of our template documents cannot be amended to include this symbol. Will it mean discrepant documents?

Entry Summary Declaration fee

7 August 2012

There are questions regarding who bears costs for “security charges” (A2/B2 and A10/B10) under the Incoterms® 2010 rules. Since 1 January 2011, for example, all incoming deliveries into the EU are subject to an Entry Summary Declaration (ENS) filing, to be done 24 hours before loading the ship. We observe that carriers are dealing with this issue differently in terms of payment. Since there are a great number of legal reporting regulations (eg in the field of hazardous materials, veterinarian, port authorities), these costs are in some cases being added to the usual sea freight and the fees are being invoiced in accordance with sea freight (either prepaid or collect). Other carriers (mainly Asian) are treating the ENS fees as purely prepaid costs to be covered by the shipper. Independent of this example, different points of view to this question are being represented in practice, such as how to account the current security fees and whether they should or should not be treated as import or export formalities. While the Incoterms rules are clauses to be used in sales contracts, within shipping company and freight contracts, they are treated as “francatur-clauses” with the result that the carrier making reference to Incoterms clauses in contracts for carriage charges the costs either to the seller (shipper) or the buyer (consignee). Therefore, in our opinion it is very important that clear statements should be made.

We think it necessary that a common use in practice should be determined and would be grateful if you could answer some of our questions.

  1. Who should, according to the Incoterms® 2010 rules, bear the costs for safety precautions for transport of goods? Should this always be the buyer?

  2. Have you heard of similar issues within other economic sectors?

HMRC guidance on “ex-works” documentation

7 August 2012

I would appreciate your comments on the following. We have sold compressor parts to a company in India on an FCA basis, which used its freight forwarding agent to export the goods. We zero rated the VAT on the basis that they would send a proof of export to us. When the proof of export arrived in the form of a SAD form it showed us as the exporter, which is not what we expected, and carried an incorrect Tariff code, which I believe reduces their import duty to nil. How can I make it clear to all parties in future that we are not the exporter for these goods and correct the current situation?

Valuing repaired goods for export documentation

7 August 2012

I’m struggling with how to value certain consignments at export after repair. Can you advise where I can find the valuation rules? I looked at the valuation rules in volume 1 of the Tariff and, as I understand it, the value at export will be the value at import plus cost of repair. One shipment I have covers goods with an actual value of $91,908 and a repair value of $350, the cost to the customer is nil and the value of the goods is $16,251. In this case, the customs value at import according to CHIEF was $91,908 (as per the commercial invoice provided by the customer). There was, however, no transactional value, as this was a return under warranty for repair — we imported under CPC (Customs Procedure Code) 61 23 F01. Is the import value $91,908 or is it nil, making the export value (given the cost of repair is $1050) either $92,958 or $1050?

Protectionism in international trade

7 August 2012

I am fairly new to exports but I’m keen to learn. Recently I heard people talking about “Protectionism”. Could you give us a brief run-down on that topic please?

Current arms embargoes

7 August 2012

I need a list of current arms embargoes but I can’t seem to find one that is reliable. Can you help?

Fast parcel operators and IPR

7 August 2012

I am more than a little confused about our IPR (Inward Processing Relief) procedures when dealing with what are known as Fast Parcel Operators (FPOs). I know that they are not the same as a conventional freight forwarder in terms of IPR export declarations and CPC (Customs Procedure Code) and am considering changing to an ordinary freight forwarder, while at the same time seeing that some of our lightweight shipments are ideal for the FPOs who operate a door-to-door fast-track system. Can you advise?

Incoterms errors

7 August 2012

Can you help? One of our smaller suppliers has got into a mess. Here is a short summary of what is an error-strewn scenario. It involves the movement of goods from China to Ireland. The contract with the company in China specified Incoterms® rule FCA (Free Carrier — named point in supplier’s country). This was quoted to the customer in Ireland, but the Irish party asked for a CIF rule (Cost Insurance & Freight) quote — and, in two separate replies, mentioned it was CIF. Our friends replied that it was FCA. No order acknowledgement was raised, there was no confirmation from Ireland that FCA was acceptable and no terms and conditions were issued for the movement. The goods were incorrectly handled on loading in China, because they tried to double-stack when loading two containers. Our customer’s container slipped and the drums inside moved. The shipping line accepted responsibility for this and re-loaded, but said everything was alright with the consignment and had pictures to show the drums were undamaged. The freight arrived in Ireland and some of the clasps on the drums were open. Ireland rejected the shipment. Our customer said it was Ireland’s risk, but they maintained it was not. Our customer has not been paid. They have no title clause in the contract or statement of governing law in case of dispute.