China
Africa
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Cost Estimating Basics
Published in Chris Domanski, Cost Engineering, 2020
The incoterm choice depends on many factors. Sometimes it is based on cost, but often it is based on desired inventory levels or risk associated with inventory carrying and transportation. If the choice is purely based on cost, the company with the larger volumes of product will usually have better leverage on logistics cost. A customer might choose a supplier to pay for the logistics if the supplier actually transports more product than the customer. In cases where inventory is the main consideration, the customer might require the supplier to take care of logistics because in those cases the parts are not considered as part of the customer inventory cost and risk until they arrive at the customer factory. The International Chamber of Commerce (ICC) website contains a wall chart of commonly used incoterms with descriptions of carrier and insurance responsibilities.
Commercial Law and Competition Law
Published in Ron Bartsch, International Aviation Law, 2018
In 1936, the International Chamber of Commerce collated a series of standard terms into the system now known as the ‘international commercial terms’, or Incoterms. The Incoterms are standardized forms of contract wording to allocate responsibility for arranging details of the transport of the goods, and for distributing risks and costs as between the seller and buyer of the goods. These terms can be inserted into the contract of sale, which will contain other terms (most notably the price and description of the goods being sold, the identities of the buyer and seller and so on), to address in a standard way the aspects relating specifically to how the goods will be transported. In international commerce, it is important to use such standardized terms where possible in order to avoid or reduce confusion that may arise in dealings over vast distances and in different languages.
General introduction
Published in Adedeji B. Badiru, Handbook of Industrial and Systems Engineering, 2013
Since international freight shipments encounter multiple bodies of rules and regulations from different governments while in transit, the International Chamber of Commerce (ICC) developed a set of international commercial terms. These terms are referred to as Incoterms. Incoterms are commonly used in international commercial transactions. "They are used to divide transaction costs and responsibilities between buyers and seller and reflect state-of-the-art transportation practices (Element International, 2011)." Incoterms create a common language of understanding for all industries and nationalities. "Incoterms are designed to create a bridge between different members of the industry by acting as a uniform language they can use" (Foreign Trade Online, 2012). Incoterms provide shippers with a means of tracking the status of their shipment as they travel around the globe. Additionally, Incoterms define who is legally in possession of a shipment while in transit. Incoterms facilitate global trade because it streamlines negotiations and legal responsibilities for parties to a transaction.
A multi-agent framework for container booking and slot allocation in maritime shipping
Published in International Journal of Production Research, 2022
Jasashwi Mandal, Adrijit Goswami, Sushma Kumari, Nishikant Mishra
This agent will receive the order from the buyer. The buyer will ask for a quote from the agent when looking for purchasing goods. The quote comes with or in as a proforma invoice. This invoice is merely an estimate and it can be changed later. A commercial invoice, on the other hand, is the final and formal invoice that is utilised for customs declarations. The order collection agent will interact with the supplier selection agent and provide him the information regarding the quotation. If the selected supplier approves the quote, the agent will create a purchase order on behalf of the buyer. A purchase order is a contract that outlines the order’s contents as well as the price of the products. A detailed purchase order may additionally include origin and destination addresses, an estimated shipping date, and freight measurements, depending on the business. While issuing a purchase order, the agent will make sure that one of the several incoterms should control the contract. When it comes to shipping, Incoterms are essentially the agreements that define the costs and risks between the buyer and the supplier. Throughout its activities, the order collection agent constantly updates the knowledge base agent. It is also capable of updating itself both online and offline.
Incoterms® 2020 and the missed opportunities for the next version
Published in International Journal of Logistics Research and Applications, 2021
Incoterms® define the supply chain requirements for the sale and purchase of goods. They are the accepted method for expressing – in an abbreviated and enforceable manner – the obligations, risks and costs that each of the seller and buyer must incur in the exchange of the goods. They support the growth of trade and their use facilitates international as well as domestic trade of goods. These rules are intended to be utilised as part of any and all buyer and seller agreements and add clarity and understanding between the parties to the agreement. As this can be between two parties with different cultures, religions, languages and so on, the rules themselves must be understood by both buyer and seller in the same way, precluding ambiguities within the rules.