Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Presentado por
Karoll Riascos
Componente – ingles
Why did some of the lecturers say that understanding the way Incoterms
work could be a quite confusing area?
- Incoterms determine the responsibilities and costs that each party must
assume during the international transport chain. In the video they express
that choosing the incoterm that best solves your needs can be a
challenge, especially if you have little experience as a shipper. From the
costs of international transport to the responsibilities, through customs
clearance and the payment of tariffs, there are many factors to consider
so some find it quite complex and confusing to take into account each of
these factors when analyzing each of the incoterms.
How are Incoterms useful to avoid misunderstanding when talking bot
international trade?
Why do many people see the incoterm ex-works (EXW) as the simplest
way to understand how the incoterms work?
- This is because under the incoterm EXW, the importer has almost total
control of the process, so it can be extremely competitive. In terms of
costs and risks, the EXW incoterm requires minimal involvement of the
seller and greater responsibilities of the buyer. That said, working under
EXW conditions is more recommended for those experienced buyers
who are familiar with the procedures in the country of origin and can
manage the entire import process.
Why could you use a wrong incoterm for your business if there is not right
or wrong when using an Incoterm?
- In any international buying and selling process there are always two
parties, buyer and seller, each with its own interests. If you are the seller,
you are generally responsible for getting the goods to the point of
destination, so the use of CRF and CIF is recommended since these
allow you to control the costs of international transport to the port of
destination. On the other hand, if you are the buyer, you must choose the
incoterm that offers you greater control over the costs of transport, but
as a buyer so it is recommended to use incoterms such as the FOB which
means that your seller leaves the merchandise at the port of origin, takes
care of the procedures in the country of origin and leaves everything
ready for international transport.
What are some of the operations that generate costs and must be paid
either by the buyer or the seller?
The operations that generate costs are those that are generated as
- Expenses from when the merchandise arrives at the port of arrival until
the merchandise is loaded into the Transport that will take it to the final
destination. Import customs expenses
- A national transport from the port of arrival to the destination,
manufactured by the importer.
What are the three basic elements that Incoterms cover? Briefly explain
how they work all together in a contract of sale.
Carriage: Deciding how a shipment will get from point A to point B can
seem like a fairly basic task. However, an international shipment can
have several legs to its journey, and the Incoterm will determine exactly
how far the seller will get the shipment before the buyer assumes
responsibility. Any transport after that will be the responsibility of the
buyer.
In a sales contract the responsibilities of both the buyer and the seller are
established and depending on it the different aspects to be taken into
account can be controlled before and after an international negotiation
process of exchange of godos.
- Why the conditions under which the different incoterms are applied vary
depending on the characteristics of the particular markets and the
international policies that are taken with respect to them, should always
be taken into account when concluding an employment contract since it
helps to clarify doubts such as taxes per product, by import among
others.
What aspects should be taken into account to establish the best incoterm(s)
to define the shipment of services?
Mode of transport
Not all incoterms are suitable for all international shipments, and
depending on the mode of transport, you will have to opt for one or the
other.
Level of control
The incoterm you choose for an international shipment determines the
parts of the shipment for which you are responsible. As a general rule,
the more responsibility you take on, the higher the cost. But this also
translates into greater control over shipping and, consequently, greater
competitiveness.
Why would it be necessary to add extra words or explanation in your sales
contract when using incoterms?
Not all the people with whom negotiations are entered into have the expertise
to recognize these terms at first sight so it is worth adding a brief explanation
of these concepts in the sales contract, in the same way normally the other
countries due to the diversity of speech and language is interpreted differently
the definition of each of these concepts so it is essential to leave them shaped
in such a way that they act as a general rule between both parties during the
negotiation process.