Price Quote for Export

I agree with John wholeheartedly. "It depends" truly is the answer.
Whether you are exporting OR importing you should consider referring to the
latest edition of INCOTERMS from the International Chamber of Commerce (you
can order it online).

INCOTERMS spells out specifically which party pays for those services
necessary for delivery at a certain point, and, most importantly, who bears
the risks associated with each aspect of the delivery. Say for example you
wanted to deliver goods to your foreign buyer FOB. You would look up "FOB"
in INCOTERMS to determine which party is responsible for which part of the
delivery process. If you choose delivery FOB (or any other mode of
delivery), your agreement with your buyer should specify the INCOTERMS
definition of FOB, for example, "Delivery FOB (INCOTERMS [X])" where "X" is
the year of the INCOTERMS publication from which you took your definition.
That's a whole lot easier than setting forth in your agreement which party is
responsible for what (e.g., customs clearance, import duties, in-country
ground transportation, et cetera).

INCOTERMS is the international standard for delivery terms, and sets forth
more means and methods for delivery than any single normal person could ever
devise. I don't have my book handy, but I recall there is some term like
"DAF" -- delivered at frontier. I imagine the driver for a freight forwarder
stopping his truck at one of those "metal-hut one-guard" border crossings in
sub-Sahara Africa, off-loading the goods, and tossing the shipment box-by-box
across the border.

Specifying INCOTERMS is not an academic exercise. Every state in the US
other than Louisiana (which uses Civil Law) has enacted some version of the
Uniform Commercial Code ("UCC"). The UCC sets forth the rights and
responsibilities of each party to a commercial transactions. Article 2 of
the UCC sets forth the rights and responsibilities of the parties with
respect to the sale of goods, and the UCC definition of FOB differs greatly
from that set forth in INCOTERMS. If you and your buyer get into some
dispute over your agreement, if INCOTERMS is not specified the adjudicating
Court will most likely use the definition of FOB set forth in the law that
governs the transaction. [Note: I am probably one of 10 attorneys in the US
who doesn't think litigation resolves issues. Better to have a simple,
well-defined sales agreement upfront than try to argue out details later.]

The International Chamber of Commerce publishes a large number of very useful
books and booklets. Just visiting their website is informative and
entertaining.

Time for my legal butt-covering. The foregoing is general knowledge
applicable to parties involved in the international sales of goods. It does
not take into account the specifics of any particular transaction, any
particular party, or any individual law, rule, regulation, statute or
practice with respect thereto. This email is not intended to, and does not,
provide legal advice. Check with your lawyer before signing any contract.


Good luck!

Celeste

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