1. Incoterms, Export Documentation and AES
Joe Wyson – Executive Vice President
December 9, 2014

2. 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

3. The Incoterms Named Place or DestinationF F C D
Supplier
Export Port or Airport
Import Port or Airport
Buyer
EXW
FCA
CPT
DAT
FCA
FOB
CFR
DAP
FAS
CIP
DDP
CIF

4. Determine the mode? Any Mode Sea and Inland Waterway Transport EXW FCA
CPT
DAT
FCA
FOB
CFR
DAP
FAS
CIP
DDP
CIF

5. Cost Matrix - EXAMPLE Invoice Value $100,000
What is the Ex Works Value?
$100,000
Inland Freight
$500
What is the FCA Warehouse Value
$100,000
Export Documentation
$50
What is the FCA Airport Value
$100,550
Air Freight Costs
$1,000
What is the CIP Value
$101,600
Customs Clearance
$100
What is the DAP Value
$101,650
Delivery
$100
What is the DDP Value
$124,470
Duty
$2,000
20% of CIF
$20,720
Insurance
$50

6. 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.

7. 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.

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
· False
Incoterms® 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 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

10. 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

11. 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

12. U.S. Goods Coming Back To The United States
Commercial Invoice
Packing List
Manufacturers Affidavit
U.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 product
Harmonized code/Schedule B number
“Quantity in Schedule B units”
Incoterm
Value
ECCN
Properly executed

15. Commercial Invoice Common Inconsistencies Incoterm
Clear description of product
Consignee type
Direct Consumer
Gov’t entity
Reseller
Other/Unknown
Value
Value for Customs
Currency

16. Packing List Common Inconsistencies Itemizing each package
Weight of each package
Dimensions of each package
Clear description of product

17. 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

18. ATA Carnet http://www.roanoketrade.com/
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. + 21

19. ATA Carnet Common Inconsistencies Thinking all countries are covered
Listing items that will not come back
Not having the Carnet back in a year

20. AUTOMATED COMMERCIAL ENVIRONMENT
INTERNATIONAL TRADE DATA SYSTEM
AUTOMATED EXPORT SYSTEM
PARTNER GOVERNMENT AGENCIES
LICENSING, PERMITTING & CERTIFICATION

21. Sample AES Electronic Export Information

22. AES - Automated Export System
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

23. 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