Presentation on theme: "Incoterms, Export Documentation and AES"— Presentation transcript:
1 Incoterms, Export Documentation and AES Joe Wyson – Executive Vice PresidentDecember 9, 2014
2 11 Incoterms 2010 Rules Rules for any mode or modes of transport EX WORKS :EXW (insert named place of delivery) Incoterms 2010FREE CARRIER :FCA (Insert named place of delivery) Incoterms 2010CARRIAGE PAID TO :CPT (Insert named place of destination) Incoterms 2010CARRIAGE AND INSURANCE PAID TO :CIP (insert named place of destination) Incoterms 2010DELIVERED AT TERMINAL :DAT (insert named terminal at port of destination) Incoterms 2010DELIVERED AT PLACE :DAP (Insert named place of destination) Incoterms 2010DELIVERED DUTY PAID :DDP (Insert named place of destination) Incoterms 2010Rules of Sea and Inland Waterway TransportFREE ALONG SIDE :FAS (Insert named port of shipment) Incoterms 2010FREE ON BOARD :FOB (Insert named port of shipment) Incoterms 2010COST AND FREIGHT :CFR (Insert named port of destination) Incoterms 2010COST, INSURANCE AND FREIGHT :CIF (Insert named port of destination) Incoterms 2010
3 The Incoterms Named Place or Destination FFCDSupplierExport Port or AirportImport Port or AirportBuyerEXWFCACPTDATFCAFOBCFRDAPFASCIPDDPCIF
4 Determine the mode? Any Mode Sea and Inland Waterway Transport EXW FCA CPTDATFCAFOBCFRDAPFASCIPDDPCIF
5 Cost Matrix - EXAMPLE Invoice Value $100,000 What is the Ex Works Value?$100,000Inland Freight$500What is the FCA Warehouse Value$100,000Export Documentation$50What is the FCA Airport Value$100,550Air Freight Costs$1,000What is the CIP Value$101,600Customs Clearance$100What is the DAP Value$101,650Delivery$100What is the DDP Value$124,470Duty$2,00020% of CIF$20,720Insurance$50
6 Incoterms® rule EXWUnder 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 sellerUnder EXW, the buyer is responsible to load the goods on the means of transport provided by the buyer.
7 Incoterms® rule FCAUnder 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 sellerUnder 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.
8 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· FalseIncoterms® rules do not deal with the ownership or transfer of property rights in the goods.
9 DOCUMENTATION The Shipper Supplies Or Has In Their Possession CEO Export Commitment LetterContractPro forma InvoicePurchase OrderPacking ListLabels on the BoxesProper Stamping of Wooden PalletsCommercial InvoiceShippers Letter of InstructionExport Power of AttorneyDocuments – if applicableLetter of CreditCarnetExport LicenseInspection Certificate – Clean report of findingsHaz Mat CertificateTruckers Bill of LadingRecordkeeping
10 The Forwarder Receives Packing List – 4 copiesCommercial Invoice – 4 copiesShippers Letter of InstructionPower of AttorneyDocuments – if applicableLetter of CreditCarnetExport LicenseTruckers Bill of Lading
11 The Forwarder Produces QuotationWarehouse receiptBill of Lading (Ocean) or Airway Bill (Air)Dock Receipt (Ocean)AES TransmissionTransfer receiptShipment transit alertsOther documents if applicableCertificates of OriginInsurance CertificatesConsular InvoicesInspection CertificateBilling package
12 U.S. Goods Coming Back To The United States Commercial InvoicePacking ListManufacturers AffidavitU.S. Customs Power of Attorney
13 Accurate Documentation Shipment delays are normally caused by inaccurate or incomplete information on documentation produced at origin (export)
14 Letter of Instruction Common Inconsistencies Clear description of productHarmonized code/Schedule B number“Quantity in Schedule B units”IncotermValueECCNProperly executed
15 Commercial Invoice Common Inconsistencies Incoterm Clear description of productConsignee typeDirect ConsumerGov’t entityResellerOther/UnknownValueValue for CustomsCurrency
16 Packing List Common Inconsistencies Itemizing each package Weight of each packageDimensions of each packageClear description of product
17 Manufacturers Affidavit Return American GoodsMust be supplied upon entry back into the USAIf not supplied, the product will be considered of foreign origin and duty, if applicable, will apply
18 ATA Carnet http://www.roanoketrade.com/ Admission Temporaire/Temporary Admission CarnetPassport For Commercial Samples And Professional Equipment, Trade Shows and DemosIssued By The U.S. Council Of The International Chamber Of CommerceRecognized In Approximately 100 Countries.+21
19 ATA Carnet Common Inconsistencies Thinking all countries are covered Listing items that will not come backNot having the Carnet back in a year
20 AUTOMATED COMMERCIAL ENVIRONMENT INTERNATIONAL TRADE DATA SYSTEMAUTOMATED EXPORT SYSTEMPARTNER GOVERNMENT AGENCIESLICENSING, PERMITTING & CERTIFICATION
22 AES - Automated Export System Common ErrorsInvalid or out of date HS or Schedule B numberMissing the “quantity in B units”Value is inconsistent with documentsMissing ECCN when applicable
23 FINES AND PENALTIESThe International Emergency Economic Powers (IEEPA) Enhancement ActCivil Penalties$1,000,000 and 20 years imprisonment per violationAdministrative Penalties+ $250,000 per violation or twice the amount of the transactionDenial of export privileges