Incoterms in practice: Case studies Hypothetical scenarios and audience polling

Avoiding Incoterm Pitfalls to Achieve Seamless Global Sourcing: Navigating Risks, Ensuring Clarity, and Optimizing Contractual Trade Relations

November 7, 2023 3:15pm

Tom Gould
Vice President, Global Customs and Trade
Flexport
Member
COAC – CBP Commercial Operations Advisory Committee

Thomas Cook
Managing Director
Blue Tiger International

George Tuttle, III
Trade Attorney
Tuttle Law Offices

This session explores the top pitfalls that practitioners should avoid when applying confusing and often contradictory Incoterm trade rules.

  • Avert ambiguity: Avoid disputes between buyers and sellers over the responsibilities and obligations outlined in the agreement.
    • CASE STUDY: A food import sale to China
  • Understand coverage: Addressing other aspects of the transaction beyond delivery of goods, such as the payment of goods, warranties, and intellectual property rights.
    • HYPOTEHTICAL SCENARIO: Passage of title
  • Avoid outdated provisions: Changes in transportation and logistics practices, as well as other commercial developments
  • Understand non-binding and non-application references in U.S. law
    • CASE STUDY: Electronics import from Kobe, Japan to San Diego
  • Understand lack of uniformity: Interpretation and application of terms can vary between countries and regions, leading to potential misunderstandings and disputes
    • HYPOTEHTICAL SCENARIO: Interpreting USA versus EU