Simply put, Incoterms® are the selling terms that the buyer and seller of goods both agree to during international transactions. Legal authorities and governments accept these rules around the world. Deciding which of the 11 Incoterms® to select is fundamental for the seller to create the pro forma invoice, and it serves as the basis for the buyer’s purchase order. So what is the perfect arrangement for the seller to offer while accommodating the buyer’s purchase terms?
Ex Works (EXW) named place and Delivered Duty Paid (DDP) named place are the opposite extremes of seller versus buyer responsibility. Ideally, sellers favor EXW because it’s the closest thing to selling domestically. On the other hand, buyer’s typically welcome DDP because the seller assumes all the responsibility, risk, and costs associated with transporting the goods until the buyer receives them. So what is the Incoterm® of sale that allows the buyer and seller to meet in the middle? Free Carrier (FCA) seller’s shipping facility.
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Logistics Plus ForwarderPlus services go beyond the freight forwarder’s traditional role. That includes collaboration with the seller and prospective buyer at the earliest transaction negotiation stages. The best way to illustrate this process is through an actual shipment example. This describes how the Logistics Plus Pro Forma invoice is created, and it takes the viewer through the steps involved from the purchase order issuance, cargo receiving, and main carriage shipping.
Logistics Plus enhanced international freight forwarding and customs brokerage services can provide you with the solutions you need. Do you have questions on how this can be used for your company? Sign up for a free online presentation using the button below. We’re here to help!
