If I were a Vietnamese coffee bean exporter to the United States, I would favour the Incoterms FCA above other methods for its advantages.
For the seller, EXW is the most practical Incoterm. The seller's only responsibility is to arrange the commodities at the buyer's disposal for collection at the seller's facilities. However, in international shipments, EXW is not frequently used. With EXW, the seller only needs to have the cargo ready for pick-up at their warehouse, and the buyer is in charge of everything else, including loading it. EXW will not function since customs clearance requires the seller's involvement when crossing borders, and with EXW, the buyer picks it up before it passes through customs. On the other hand, with FCA, the seller is responsible for transporting it to a transportation point, such as a port or airport. This is important because, as the seller, I would want it to arrive safely and on schedule to protect my reputation for future business with one of the biggest partners.
Another factor to consider when choosing an FCA is that the commodities would be shipping as containerized cargo. FOB and CIF are other two of the most commonly used Incoterms in the Vietnamese shipping trade. However, when buying and selling goods transported by container, the FOB rule is no longer relevant and must be replaced by the FCA rule. This is due to the fact that the carrier has the responsibility for loading and unloading containers on the ship once the products have been carried via container, the risk is passed from the seller to the buyer when the seller delivers the items to the shipping line at the container yard or container terminal at the loading port. Furthermore, when it comes to sea containers, there is a grey area where obligations are unclear if the cargo is damaged or even lost while waiting to be loaded. Until it arrives at its final destination, containerized freight should stay sealed. Suppose a containerized product is transported incorrectly under FOB or CIF and arrives damaged. In that case, it might be challenging to identify where and when the damage happened, perhaps resulting in an insurance and responsibility gap.
If I were a Vietnamese coffee bean exporter to the United States, I would
favour
the
Incoterms
FCA above other methods for its advantages.
For the
seller
,
EXW
is the most practical
Incoterm
. The seller's
only
responsibility is to arrange the commodities at the buyer's disposal for collection at the seller's facilities.
However
, in international shipments,
EXW
is not
frequently
used
. With
EXW
, the
seller
only
needs to have the cargo ready for pick-up at their warehouse, and the buyer is in charge of everything else, including loading it.
EXW
will not function since customs clearance requires the seller's involvement when crossing borders, and with
EXW
, the buyer picks it up
before
it passes through customs.
On the other hand
, with FCA, the
seller
is responsible for transporting it to a transportation point, such as a port or airport. This is
important
because
, as the
seller
, I would want it to arrive
safely
and on schedule to protect my reputation for future business with one of the biggest partners.
Another factor to consider when choosing an FCA is that the commodities would be shipping as containerized cargo. FOB and CIF are other two of the most
commonly
used
Incoterms
in the Vietnamese shipping trade.
However
, when buying and selling
goods
transported by
container
, the FOB
rule
is no longer relevant and
must
be replaced
by the FCA
rule
.
This is due to the fact that
the carrier has the responsibility for loading and unloading
containers
on the ship once the products have
been carried
via
container
, the
risk
is passed
from the
seller
to the buyer when the
seller
delivers the items to the shipping line at the
container
yard or
container
terminal at the loading port.
Furthermore
, when it
comes
to sea
containers
, there is a
grey
area where obligations are unclear if the cargo
is damaged
or even lost while waiting to
be loaded
. Until it arrives at its final destination, containerized freight should stay sealed. Suppose a containerized product
is transported
incorrectly
under FOB or CIF and arrives damaged.
In that case
, it might be challenging
to identify
where and when the damage happened, perhaps resulting in an insurance and responsibility gap.