Delivering the Goods

Delivering the Goods

Incoterms
An important consideration at quotation stage is the use of a delivery term (Incoterm). A common Incoterm is EXW (ex-works) where the obligation for collection of goods and responsibility for export and import procedures is solely with your customer. At the opposite end of the spectrum would be DDP (delivery duty paid). Here the onus is on you as the supplier to provide carriage to a named place of destination and to be responsible for all export and import clearances, including the payment of local duties and taxes.

For example, if you have quoted £10,000 EXW but the signed contract stipulates £10,000 DDP Hong Kong, you will find yourself liable for freight costs, responsible for all export and import paperwork and the payment of appropriate import duties. If you have not accounted for this you will soon see a decrease in your profit margin or could even suffer a loss!

Tags
 delivering the goods  delivery term  import procedures  duties and taxes  import duties  freight costs  profit margin  onus  incoterm  paperwork  quotation  spectrum  obligation  exw  hong kong  

Comments

Post a Comment

Popular posts from this blog

Office of International Trade

Office of International Trade The Office of International Trade offers many programs for exporters, such as: • Export Counseling: Through Export Counseling, individual counseling by international trade specialists is offered when available in the area. For this purpose it might be wise to investigate the counseling staff that is available from both the US&FCS and SBA if both offices are equally available to you. • Export Training: Export Training is generally offered by means of co-sponsorship with DOC and/or private sector organizations. • Legal Assistance: The Export Legal Assistance (ELAN) program offers free, initial consultations on the legal aspects of exporting through an arrangement with the Federal Bar Association by qualified attorneys in the International Law Council. • Export Information Program (XIS): The XIS provides data that is based on SITC product categories taken from U.N. data. Check for submission dateon this and, for that matter, all other sources of inf...
Read more

Opportunity bank

Opportunity bank The opportunity bank is a computerized database maintained by OPIC to match American investors with developing country projects. It currently has more than 1,000 overseas projects and 4,000 potential American investors on file. Most investors would be firms interested in joint ventures to increase their potential worldwide sales territory or improve their efficiency and competitiveness domestically and abroad; perhaps even to secure a necessary component or raw material for their American production.Investor information service The investor information service is a series of kits on OPIC countries that are available by individual country or by regions. It is an excellent way to study the potential in an area for joint ventures or investment opportunities at a very reasonable cost. Relative  american investors  country projects  overseas projects  sales territory  opic  necessary component  worldwide sales  developing country...
Read more

FORECASTING EXCHANGE-RATE MOVEMENTS

FORECASTING EXCHANGE-RATE MOVEMENTS In the previous section we looked at the general law of supply and demand, showed how governments intervene to manage exchange-rate movements, and explained how inflation and interest rates can be important determinants of exchange rates. In this section we survey data that can be monitored in order to get an idea of what will happen to exchange-rate values. As the preceding discussion elaborates, a variety of factors influence exchange-rate movements. Managers must be able to analyze these factors in order to have a general idea of the timing, size, and direction of an exchange-rate movement. However, prediction is not a precise science, and many things can cause the best of predictions to differ significantly from reality. For freely floating currencies, the law of supply and demand determines market value. However, very few currencies in the world are freely floating; most are managed to a certain extent, which implies that governments need t...
Read more