International Trade Blog

When I first talk to exporters frustrated by the amount of time it takes to complete their export documentation, they often tell me they can spend two hours or more on every single shipment. If they have multiple export orders to ship, the time they have left to do any other part of their job is virtually nil.

A typical export shipment can require five or more documents including a commercial invoice, a packing list, a shipper’s letter of instruction, a bill of lading, and a certificate of origin. On top of that, a shipment valued at more than $2,500 per Schedule B code needs to be filed electronically through the Automated Export System (AES). And, of course, every shipment, regardless of value, needs to be screened against U.S. export regulations.

It’s easy to see why it can take so long!

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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 FAS, also known as Free Alongside Ship.

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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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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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Twenty years ago, it took some effort to become an exporter. Today, primarily due to the internet, you can market your products and services around the globe without even trying. In fact, if your company has a website, you already are!

But just because it may be just as easy for someone in Tunisia to order your products online as it is for a person in Topeka, it doesn’t mean you’re ready to be a successful exporter. Being an accidental exporter is easy; being a successful exporter—one who makes money, grows a business, and stays out of trouble—takes some work.

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If you ship goods domestically, you may wonder why you need to know Incoterms too. FOB is FOB, isn't it?

Well, actually, no—they’re not!

While the vast majority of companies in the United States use the shipping terms identified under the U.S. Uniform Commercial Code (UCC) when shipping domestically, these shipping terms aren't appropriate to use when exporting.

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For exporters, any sale is a gift until payment is received. For importers, any payment is a donation until the goods are received. Successful exporters and importers recognize this conundrum and are able to negotiate payment terms that recognize the inherent risk and yet meet the needs of both parties.

There are five primary methods of payment in international trade that range from most to least secure. Of course, the most secure method for the exporter is the least secure method for the importer and vice versa. They key is striking the right balance for both sides. This article focuses on open account.

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How much do you know about the inland bill of lading? Even though it’s a straightforward form, it’s important to understand it and make sure you’re completing it correctly. After all, it may be the only transportation document you fill out as an exporter.

Below, I’ll walk you through what the inland bill of lading is, what it does, and four significant reasons to use one.

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