Q194: When may I sell my exports in a foreign currency?

A194: This seems like a simple question, with many sellers, I am sure, convinced that it is their choice when to price and sell their goods in a foreign currency, but there’s a bit more to it than that. There are three external and overriding issues to consider before contemplating the seller’s risk appetite for […]

Q193: When would I not use Incoterms?

A193: You would not (or cannot) use Incoterms Rules whenever a law prohibits them; or your contract terms avoid them; or in those cases where the underlying circumstance of the model contradicts them. It is the last of these that generally proves to be the most common reason. Law: I am not aware of any […]

Q190: Why do my suppliers insist on quoting Incoterms FOB and not FCA, even though my orders are in full containers?

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, […]

Q187: The buyer’s vessel is delayed and our cargo has incurred storage in the port. As an FOB seller, can we avoid these charges?

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, […]

Q186: I’ve sold CPT by road, some of the goods were lost in transit before the border, the balance has arrived but possibly damaged. The Buyer refuses to receive these and refuses to pay me. What is my position?

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 […]