Presentation on theme: "Incoterms, Export Documentation and AES Joe Wyson – Executive Vice President December 9, 2014."— Presentation transcript:
Incoterms, Export Documentation and AES Joe Wyson – Executive Vice President December 9, 2014
11 Incoterms 2010 Rules Rules for any mode or modes of transport EX WORKS:EXW (insert named place of delivery) Incoterms 2010 FREE CARRIER:FCA (Insert named place of delivery) Incoterms 2010 CARRIAGE PAID TO:CPT (Insert named place of destination) Incoterms 2010 CARRIAGE AND INSURANCE PAID TO:CIP (insert named place of destination) Incoterms 2010 DELIVERED AT TERMINAL:DAT (insert named terminal at port of destination) Incoterms 2010 DELIVERED AT PLACE:DAP (Insert named place of destination) Incoterms 2010 DELIVERED DUTY PAID:DDP (Insert named place of destination) Incoterms 2010 Rules of Sea and Inland Waterway Transport FREE ALONG SIDE:FAS (Insert named port of shipment) Incoterms 2010 FREE ON BOARD:FOB (Insert named port of shipment) Incoterms 2010 COST AND FREIGHT:CFR (Insert named port of destination) Incoterms 2010 COST, INSURANCE AND FREIGHT:CIF (Insert named port of destination) Incoterms 2010
The Incoterms Named Place or Destination EFFCD SupplierExport Port or AirportImport Port or AirportBuyer EXW FCA FOB FAS CPT CFR CIP CIF DAT DAP DDP
Determine the mode Determine the mode? FCA FOB FAS CPT CFR CIP CIF DAT DAP DDP Any ModeSea and Inland Waterway Transport EXW
Cost Matrix - EXAMPLE Invoice Value$100,000 Inland Freight$500 Export Documentation$50 Air Freight Costs$1,000 Customs Clearance$100 Delivery$100 Duty$2,000 20% of CIF$20,720 Insurance$50 What is the Ex Works Value?$100,000 What is the FCA Warehouse Value$100,000 What is the FCA Airport Value$100,550 What is the CIP Value$101,600 What is the DAP Value $101,650 What is the DDP Value$124,470
Incoterms® rule EXW Under Incoterms® rule EXW when the goods are picked up at the seller’s premises, who is responsible for the loading of the goods on the means of transport provided by the buyer? The buyer The carrier The seller Under EXW, the buyer is responsible to load the goods on the means of transport provided by the buyer.
Incoterms® rule FCA Under Incoterms® rule FCA when the goods are picked up at the seller’s premises, who is responsible for the loading of the goods on the means of transport provided by the buyer? The buyer The carrier The seller Under FCA, if the named place of delivery is the seller’s premises, the seller must load the goods on the means of transport provided by the buyer.
Ownership (Title) Transfer Under the Incoterms® rule FOB ownership or property rights in the goods transfers from seller to buyer when the goods are placed on board the vessel at the port of shipment. · True · False Incoterms® rules do not deal with the ownership or transfer of property rights in the goods.
DOCUMENTATION The Shipper Supplies Or Has In Their Possession CEO Export Commitment Letter Contract Pro forma Invoice Purchase Order Packing List Labels on the Boxes Proper Stamping of Wooden Pallets Commercial Invoice Shippers Letter of Instruction Export Power of Attorney Documents – if applicable Letter of Credit Carnet Export License Inspection Certificate – Clean report of findings Haz Mat Certificate Truckers Bill of Lading Recordkeeping
The Forwarder Receives Packing List – 4 copies Commercial Invoice – 4 copies Shippers Letter of Instruction Power of Attorney Documents – if applicable Letter of Credit Carnet Export License Truckers Bill of Lading
The Forwarder Produces Quotation Warehouse receipt Bill of Lading (Ocean) or Airway Bill (Air) Dock Receipt (Ocean) AES Transmission Transfer receipt Shipment transit alerts Other documents if applicable Certificates of Origin Insurance Certificates Consular Invoices Inspection Certificate Billing package
U.S. Goods Coming Back To The United States Commercial Invoice Packing List Manufacturers Affidavit U.S. Customs Power of Attorney
Accurate Documentation Shipment delays are normally caused by inaccurate or incomplete information on documentation produced at origin (export)
Letter of Instruction Common Inconsistencies Clear description of product Harmonized code/Schedule B number “Quantity in Schedule B units” Incoterm Value ECCN Properly executed
Commercial Invoice Common Inconsistencies Incoterm Clear description of product Consignee type Direct Consumer Gov’t entity Reseller Other/Unknown Value Value for Customs Currency
Packing List Common Inconsistencies Itemizing each package Weight of each package Dimensions of each package Clear description of product
Manufacturers Affidavit Return American Goods Must be supplied upon entry back into the USA If not supplied, the product will be considered of foreign origin and duty, if applicable, will apply
ATA Carnet Admission Temporaire/Temporary Admission Carnet Passport For Commercial Samples And Professional Equipment, Trade Shows and Demos Issued By The U.S. Council Of The International Chamber Of Commerce Recognized In Approximately 100 Countries. +
ATA Carnet Common Inconsistencies Thinking all countries are covered Listing items that will not come back Not having the Carnet back in a year
AUTOMATED COMMERCIAL ENVIRONMENT INTERNATIONAL TRADE DATA SYSTEM AUTOMATED EXPORT SYSTEM PARTNER GOVERNMENT AGENCIES LICENSING, PERMITTING & CERTIFICATION
Sample AES Electronic Export Information
Common Errors Invalid or out of date HS or Schedule B number Missing the “quantity in B units” Value is inconsistent with documents Missing ECCN when applicable
FINES AND PENALTIES The International Emergency Economic Powers (IEEPA) Enhancement Act Civil Penalties $1,000,000 and 20 years imprisonment per violation Administrative Penalties + $250,000 per violation or twice the amount of the transaction Denial of export privileges