International Trade Blog

Incoterms 2020 rules are the latest revision of international trade terms published by the International Chamber of Commerce (ICC). They are recognized as the authoritative text for determining how costs and risks are allocated to the parties conducting international transactions.

Incoterms 2020 rules outline whether the seller or the buyer is responsible for, and must assume the cost of, specific standard tasks that are part of the international transport of goods. In addition, they identify when the risk or liability of the goods transfer from the seller to the buyer.

In this article, we’re discussing the Incoterm FAS, also known as Free Alongside Ship.

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A commercial invoice is a formal request of reimbursement by the seller to the buyer. For your export shipments, it can serve several added functions:

• The destination country requires it before clearing the goods through customs.
• If there is an insurance claim on the shipment, it serves as a key supporting document.
• The buyer uses it to release funds through its bank to the seller.
• A bank examines it before reimbursing funds under a letter of credit or documentary collection.
• U.S. export regulations require that exporters retain it for five years from date of shipment.
• Exporters can use it to support foreign credit risk insurance claims.

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Companies frequently ask me to provide a sample outline for producing an export plan. Small companies typically request the outline so they can establish an export department, whereas larger companies are either looking to expand their export promotion program or to use the outline in ISO 9000 procedures.

The following is a simple export plan outline that is a compilation of a dozen outlines that have come across my desk in the past 25 years. This outline is by no means inclusive; however, it covers many basic issues that should be addressed for the plan to be useful and implemented.

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Incoterms 2020 rules are the latest revision of international trade terms published by the International Chamber of Commerce (ICC). They are recognized as the authoritative text for determining how costs and risks are allocated to the parties conducting international transactions.

Incoterms 2020 rules outline whether the seller or the buyer is responsible for, and must assume the cost of, specific standard tasks that are part of the international transport of goods. In addition, they identify when the risk or liability of the goods transfer from the seller to the buyer.

There are 11 trade terms available under the Incoterms 2020 rules that range from Ex Works (EXW), which conveys the least amount of responsibility and risk on the seller, to Delivered Duty Paid (DDP), which places the most responsibility and risk on the seller. The Incoterms 2020 Rules: Chart of Responsibilities and Transfer of Risk summarizes the seller and buyer responsibilities under each of the 11 terms.

In this article, we’re discussing the Incoterm FCA, also known as Free Carrier.

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In an ideal world, a seller always gets paid before they ship their goods.

In an ideal world, a buyer always receive their order before they pay for their purchase.

Obviously, both the buyer and seller can't live in an ideal world. Their ideal worlds conflict. Most likely, neither party lives in an ideal world, so they need to work together to find the right payment term that will meet both their needs. This is particularly true in international trade.

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In the world of the Automated Export System (AES), acronyms abound. You’re probably familiar with FTR, EEI, EIN, and ACE, just to name a few. Less frequently discussed, but no less important, is the Internal Transaction Number (ITN).

We’re addressing two questions today: What is an ITN number for international shipping, and why is it so important to exporters?

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The Bureau of Industry and Security (BIS), which is part of the U.S. Commerce Department, is responsible for implementing and enforcing the law that "regulates the export, reexport and certain transfers of most commercial items as well as some less-sensitive military items" that are subject to the Export Administration Regulations (EAR).

While there are many other agencies in other departments that regulate certain items, BIS has jurisdiction over most items—commodities, software and technology—created for commercial use.

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It has only been a couple months since we released a new version of Shipping Solutions, but the release of Incoterms® 2020 Rules necessitated another update. If you are an active Annual Maintenance Program (AMP) subscriber, you can download the update from the AMP website.

Versions 9.15 and 8.15 have fewer changes than most new releases of Shipping Solutions. The major changes are to the Incoterms and the Restricted Party Screening feature. There were also a few minor fixes you might be interested in.

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Incoterms 2020 rules are the latest revision of international trade terms published by the International Chamber of Commerce (ICC). They are recognized as the authoritative text for determining how costs and risks are allocated to the parties conducting international transactions.

Incoterms 2020 rules outline whether the seller or the buyer is responsible for, and must assume the cost of, specific standard tasks that are part of the international transport of goods. In addition, they identify when the risk or liability of the goods transfer from the seller to the buyer.

In this article, we’re discussing the Incoterm EXW, also known as Ex Works.

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Firms of all sizes are being encouraged to export their goods and services. If you’re new to the global marketplace or your firm is expanding into new markets, then it’s time to establish best practices in your organization.

The following is a list of best practices that exporters should follow for each export transaction:

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