Case Study I

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BENEMÉRITA UNIVERSIDAD AUTÓNOMA DE PUEBLA

FACULTAD DE ADMINISTRACIÓN

LICENCIATURA EN COMERCIO INTERNACIONAL

ENGLISH FOR TRADE III

CASE STUDY I

TEACHER:
MARIA TERESA ROMANO CADENA

TEAM 5:
CONTRERAS REYES SEBASTIÁN
201935251
GUTIÉRREZ CASTILLO PAOLA MARISA
201937691
GUTIÉRREZ GONZÁLEZ DANIELA ITZEL
201964379
HIJUITL RAMIREZ BRENDA LAURA
201915795
SÁNCHEZ GONZÁLEZ AMISADAI
201905479

PUEBLA, PUE. SPRING 2023


CPT (CASE STUDY)

Seller quotes CPT Incoterms® 2020 and contracts freight to the named place of
destination, charging you in your contract of carriage for:

● Sea freight;
● THC at discharge port(costs of handling and moving the goods within
port or container terminal facilities),
● Costs for moving cargo to a designated place on land at destination.

● However, the freight contract omits the charges for unloading at the latter
place and the carrier refuses to deliver goods to the buyer unless they are
paid.

The buyer pays them, but… can he later recover them from the seller?

The CPT Incoterms® 2020 provides that the seller is responsible for arranging and
paying for the carriage of the goods to the agreed place of destination.
However, the seller is not responsible for the costs of unloading the goods at the
place of destination, unless otherwise agreed between the parties. Therefore, if the
seller has agreed to pay the unloading charges, he cannot recover them after they
have been paid.
CIP. ( CASE STUDY)

● If a seller sells merchandise through CIP Juan Santamaría Airport, San José
Costa Rica, Incoterms® 2020, should the seller's invoice include the cost of
transporting those goods to San José Costa Rica or only the insurance costs
to SJCR?

If freight cost is included

● What is the minimum percentage for which the insurance must be contracted;
100% or 110% of the agreed price?

110% of the commercial invoice value, to cover possible additional expenses


such as transportation costs and customs duties.

● Is it valid to contract insurance for a percentage higher than the minimum?

Yes, the clause can be negotiated


DPU (CASE STUDY)

A buying company in Boston complains to the seller because on several occasions


the carrier has charged them for the cost of transportation between the port of entry
in Boston and the land freight terminal, where the goods are delivered, already
unloaded. The contract on which they have based their commercial relationship
establishes CIF Boston, Incoterms® 2020.

Why does this problem occur? Are you using the correct Incoterm? Are you defining
the place of delivery well?

The CIF Incoterms® 2020 states that the seller is responsible for arranging and
paying the ocean freight to the port of destination in Boston and also for arranging
transportation insurance. However, the CIF term does not include transportation
costs from the port to the inland freight terminal, so these costs must be borne by the
buyer.

What Incoterm or Incoterms could solve this problem in future deliveries?

In this case, the seller should have used a different delivery term that included
transportation costs from the port to the land freight terminal. The FCA (Free Carrier)
delivery term may be a suitable option, since the seller would be responsible for
delivering the goods to the land freight terminal and additional transportation costs
would be covered by the buyer.

Another option could be the delivery term DAP (Delivered at Place), in which the
seller is responsible for delivering the merchandise at an agreed place at the
destination, which could be the land cargo terminal in this case, and cover the costs
of transportation to that place.

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