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.
Who should, according to the Incoterms® 2010 rules, bear the costs for safety precautions for transport of goods? Should this always be the buyer?
Have you heard of similar issues within other economic sectors?