International Trade Blog

From time to time, I hear new or inexperienced exporters ask what trade compliance certifications they should get. My answer? There is no one, single certification out there for export compliance that is necessary—or in my opinion, recommended!

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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.

For a summary of Incoterms 2020 and a short definition of each of the 11 terms, read An Introduction to Incoterms.

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

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In my previous article, I described why it's critical to not only select the right distributors, but also to keep them for the long run (see the Fit/Tenure Matrix) and develop them into highly productive distributors.

Choosing international distributors without a thorough selection process is less than ideal and to be avoided at all costs: selecting the wrong distributor is a tremendous setback for the exporter and the distributor alike.

In my experience as an exporter and as a trade consultant, I have realized that this situation can be avoided by implementing a solid screening and selection process that is used for every candidate, every time.

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If 2020 and 2021 have taught us anything, it’s the importance of constantly reviewing your company’s processes and procedures. Take, for example, remote work: For decades, we thought people needed to work in offices—but in many situations, working remotely has been a value-add for all companies.

For those of us involved in international trade, one thing we need to reexamine is our handling of inventory and warehousing. In this article, I’ll discuss the differences between using freight forwarders and third-party logistics (3PL) companies for these jobs and how to identify the right partner for your needs.

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Do you know the difference between HS codes, HTS codes and Schedule B codes? In casual conversation, exporters tend to use these terms interchangeably; they, for the most part, understand that these are codes representing classifications of products.

While it’s not wrong to use them interchangeably in casual conversation, it is important to understand the differences—if not, you could get into trouble, and your shipment could, too!

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I sometimes get calls from exporters who have been asked by their international customers for their AEO number for import customs clearance.

The calls are all very similar:

What is an AEO code, and how do I find out what ours is?

My short answer:

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Supply chain managers working for small- and medium-sized enterprises (SMEs) must take their alignment and collaboration with partners seriously. Technology is going to play a critical role in future logistics, and organizations without visibility (being able to see what is happening at all stages in the supply chain) are not going to be positioned for success.

Visibility in supply chain management is critical because the process is often complex, involving multiple tiers and materials coming from multiple origins. Shipping needs to be tracked to manufacturing sites and then ultimately to the consumer. Visibility also provides insight for many areas of your company: sales, marketing, distribution and contracting. When disruptions occur and quick decisions must be made, knowing what is available and where can seriously impact your bottom line.

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In my last article, I discussed President Biden’s January 2021 Executive Order on Ensuring the Future Is Made in All of America by All of America's Workers. Since then, his Buy American vision has grown to be a major part of his administration’s economic program.

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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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The unfathomable amount of information available online about anything and everything can overwhelm us. International market research is no exception; most of the vast amount of information we collect to guide our international business decisions is obtained from online sources. Knowledge of where to find reliable, accurate, current data and statistics, and how best to use the websites, is crucial to making good decisions.  

So, how do you begin?

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