What are common problems with Incoterms?

 

Many exporters forget that;

 

·      All Incoterms must specify a place (port of shipment, port of destination etc.);

 

·      Some Incoterms (notably FOB, CFR and CIF) are reserved for sea or inland waterway transport only.  They should not be used for air, road or rail transport (the equivalent terms for these modes of transportation are FCA, CPT and CIP);

 

·      Even for sea transport FOB may be inappropriate.  If the shipment is containerized, the Incoterm to use is FCA;

 

·      “C” terms specify the place / port of destination.  This does not mean that delivery takes place there.  Because C terms refer to shipment contracts, the seller discharges his duty to deliver at the place / port of shipment.
reference: 

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The Export Answer Book
for Small and Medium-Sized Exporters
 in the Sultanate of Oman