UPDATES TO
EXPORT-IMPORT
This page is for updated material to the fourth printing of Export-Import: Everything You and Your Company Need to Know to Compete in World Markets by Joseph Zodl
(Phoenix, IIEI Press, ISBN 0-9773098-0-0).
Information was current as of press time. Because international business is always changing, we provide this page to keep our readers up to date.
Chapter One: Why You Should be Exporting or Importing
Top 15 (page 9)
Year 2007 export and import statistics are available here.
(Year 2008 statistics will be published here in Spring, 2009.)
Chapter 5: Terms of Sale
Effective January 1, 2000, the revised Incoterms are in use. The current
(fourth) edition discusses the 2000 version.
Major changes to Incoterms discussed in Export-Import are: FCA, CPT, CIP.
If the delivery is made at the seller's location, the risk passes to the buyer as soon as the
transport vehicle is loaded. So, if you are selling FCA Phoenix, Arizona Seller's
Warehouse, the buyer routes the cargo via air or sea and advises you which carrier to
use. This term can also be used for truck shipments to Canada or Mexico, freight collect
via the trucking company requested by your customer.
If the delivery is made anywhere else, the risk passes to the buyer as soon as your
transport vehicle is at the delivery point ready to unload. So, if you are selling FCA
Phoenix, Arizona Airport Cargo Terminal, the buyer still routes the cargo. You would
transfer the cargo from your premises to the cargo terminal. Your use your truck (or your
trucking company) to bring the cargo to the terminal and be in position to unload.
Because FCA is so flexible, it is important that the seller and buyer are very specific as
to FCA location. "FCA Phoenix, Arizona" won't do because we are unclear as to
whether we mean the seller's warehouse, the airport cargo terminal, etc. "FCA Phoenix,
Arizona Airport" won't do because we are unclear if we mean the cargo terminal or "on
board" the aircraft.
Incoterms 2000 does provide a default: if no specific point is named, the seller may
choose the one which he prefers. However, this lack of clarity can lead to arguments,
and harm relations with the buyer.
CPT and CIP are cousins of FCA. Under these terms, it is preferable to be clear where
the cargo is being released at origin, as well as to what destination point the freight is
paid by the seller.
Example:
"CPT Tokyo Airport Cargo Terminal. Cargo Delivered to Buyer at Phoenix, Arizona
Cargo Terminal."
FAS
In the 1990 version, the buyer was responsible for export clearance. Under Incoterms
2000, the seller is responsible.
Copies of Incoterms 2000 are now available at most public libraries. Or, you can
purchase your own copy. ![]()
Chapter 7: The Ins and Outs of
Getting Paid
Effective July 1, 2007, the effective publication on letters of credit
(documentary credits) is now Publication 600 rather than 500. This is published
by the International Chamber of Commerce (www.iccbooks.com
under "International Banking). Many international banks supply copies to
their customers at no charge.