The choice of transport solutions and thus a choice of Inco term occur in three stages.
The first step is to study the course, flows, technical and commercial constraints. The second is to study the costs, delays and safety of transportation and the third step is to determine the implications for stakeholders of the transport contract and risks.
We will therefore focus on the first and third part in this study. Our products are machine tools from Korea. A machine tool 'is capable of holding a tool and to impart a movement to carve, cut, and deform a material. This machine can be used as a means of production.'
Tags: machine tools in South Korea, transport solutions, Inco terms
[...] Procedure relating to customs clearance Goods leave Korea to the seller, Placing of goods in France are at our expense (buyer) for obvious reasons of simplicity (best knowledge of legislation and procedures of France). The seller has obligations to defray the cost of loading, transport (freight), the risk of the journey (loss or damage to goods and possible fee increases), and marine insurance against the risk of loss or damage to his goods while reaching the port of Le Havre. Bibliography Sophie Schwobthaler. The Incoterms, Foucher p. Jacques Putzeys. [...]
[...] international maritime transportation at the risk of the seller. II - Choice of Incoterms and argument There are 5 Incoterms of sale; family DAF, DES, DEQ, DDU, DDP. After negotiations with the seller, the INCOTERMS chosen for the transport of goods is as follows: (delivered ex ship).This Incoterm is exclusive for shipping. The seller chooses the Korean ship and bears the risks of maritime transport to Le Havre. Risk transfer is done at the discharge port of Le Havre. The unloading of the goods is our responsibility. [...]
[...] Import of machine tools in South Korea: the choice of Incoterm Choosing a transport solution and therefore an Incoterm is done in three steps. The first step is the study of the course, flows, technical and commercial constraints. The second is to analyze, the cost, time and transport safety and the third is by determining the implications for stakeholders, the contract of carriage, risk. We will therefore focus on first and third part in this study. I - Definition of product and the type of transport Our products are machine tools from Korea. [...]
[...] A transport truck will be needed for delivery of machine tools from Le Havre to our stores. The transport of our machine tools is optimized through the use of adequate transport equipment that we provide ourselves as what justifies the use of DES (our own trucks are suitable for transporting and loading of our machine tools). It also advised the seller to pass the boat by the Panama Canal because it avoids the risks of piracy around the Africa (Somalia). [...]
[...] We ordered several machines tools ranging from 1T to 5T. The advantages for the seller in taking a Korean carrier are: there is no middleman and price negotiation is done directly. In negotiations with the South Korean we have to define the type of sale. There are two types of sales: Sales at baseline (risk insured by the seller) and sale at the finish (risks insured by the buyer). After lengthy negotiations the seller Korea has agreed to bear the risks of shipping. [...]
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