A191: All other conditions having been met, in either a CPT or a CIP contract, delivery takes place when the seller hands over the goods to the ‘first’ carrier. The ‘main’ carrier in these Rules is the party offering the contract of carriage, from handover through to the named place; the ‘first’ carrier could be […]

A190: I assume this question has come about because your seafreight orders are containerised, and the Incoterms Rules state that using the (limited and limiting) Incoterms definition of FOB for containerised traffic might not be appropriate. But this alone does not prohibit its use. Stating that the term is not necessarily ‘appropriate’ is a caution, […]

A189: For VAT purposes a ‘direct’ export is a zero-rated supply, arising because the vendor achieves three things. Firstly, the vendor controls the supply chain. In layman’s terms this means that the vendor pays the freight to the carrier, instructing them to take the goods to a place outside of the Republic, which place may […]

A188: When selling DAP, it is always advisable for the Seller to sell to a place or point that they can get to without the Buyer. In this example had the Seller sold to a named airport rather than the Buyer’s door then although storage might still have accrued, resolving a dispute as to which […]

A187: The assumption in this answer is that the parties are using Incoterms Rules. Bear in mind that the Rules are not compulsory, and particularly with common commercial terms like FOB, which may be validly expressed F.O.B., f.o.b. or fob in reference to other systems or customary meanings, we must accept that alternative definitions abound, […]

A186: In any model, the “Seller” is only one of several roles you may take. While the commercial term used by the Seller and Buyer may guide us on the Seller’s position, it will not influence your risks and obligations in respect of your other responsibilities. Given that the Devil is in the Detail, I […]

A185: There is no connexion between any form of commercial term and the letter of credit; but you might need to find one. The Incoterms Rules may be used by sellers and buyers in an endeavour to privately regulate certain aspects of their international sales contract. Documentary Credits (L/Cs in this example) are used by […]

A184: Bear in mind that the Incoterms Rules are an incomplete system; Incoterms exists within, and is subject to, the greater sales contract terms and conditions – to such an extent that if the sales contract contradicted the Incoterms rule in any regard, the conflicting sales contract term would be superior. In replying to the […]

A183: This question is a bit like, “I am about to be hit over the head. Should I ask them to use a brick or a rock?” A C-prefixed contract is the sale of documentation, not the sale of goods. The buyer is contracted to buy documentation evidencing that the seller dispatched the contract goods. […]