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"Dear Cathy" Discusses the Israeli Certificate of Origin

by Catherine J. Petersen           8/2/2010

Dear Cathy:
 
Our customer in Israel insists that we provide them with a U.S. Certificate of Origin (COO) each time we make a shipment to them. So, we prepared a certificate of origin using the same template we use for all of our customers and signed and dated the form. We even had a notary public sign and stamp the form.
 
The customer's freight forwarder made all the arrangements for the shipment; they picked up the freight and the documents for consolidation at their warehouse. This freight forwarder sent us an email saying that we had sent them the wrong certificate of origin! Instead, we need to provide a U.S. – Israel Free Trade Agreement COO. We Googled the form, downloaded it, filled it out, had a notary sign it, and we sent it to the freight forwarder. Guess what?!! It was rejected! What is going on?
 
(In the meantime, the freight that was so urgently needed is still sitting in the forwarder's warehouse and the customer is mad as a wet hen!)
 
Sincerely,
What to do Next in Oklahoma?
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"Dear Cathy" Explains 6 Versus 10 Schedule B Digits

by Catherine J. Petersen            6/21/2010

Dear Cathy:
 
During the past year, we have been working diligently to ensure that our documents clearly reflect all the details and information needed for export and import clearance. This has included a project to ensure that our classifications for export are accurate. We are stymied now. The question that we are trying to resolve at this moment is whether we should report the six-digit portion of the Schedule B code number or the full 10-digit number on our commercial invoices. Which is best? What questions do we need to ask to make the decision that is best for us and our customers?
 
Confidentially signed,
Stymied on the West Coast
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“Dear Cathy” Helps Confused Exporter with Incoterms

 
by Catherine J. Petersen | 5/24/10

Dear Cathy:
We are confused about Incoterms. I know the Incoterms are for international transactions, but my company tries to use them for domestic transactions.
 
Our sales team tells our domestic customers that the terms are:
  • FCA Des Moines = Customer accepts Risk/Liability or
  • FOB Destination = We accept Risk/Liability.
When we use FCA Des Moines, IA for domestic sales, we use our trucks but the customer takes all risk from the time it leaves our plant. I do not think this is right. Are the two terms that we are using correct?
 
Plus, we have been looking for the Uniform Commercial Code (UCC) on the internet and cannot find anything on it. I noticed that you had published articles on this and would like to know if there is a website on just domestic terms.
 
Please help us resolve this dispute. We are at a loss! What should we do next, and where do we go for information?
 
Confidentially signed,
Confused Exporter in Iowa!
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Payment Options for International Transactions

by Catherine J. Petersen         11/30/2009  

  

You and your customer will assess many factors as you negotiate the payment term that will be used for your international transaction. They include, but are not limited to:

  • Value of the transaction;
  • Your relationship with your customer, new or long-standing;
  • The country where the goods are destined;
  • The buyer’s country’s rules about how money will be released to you, the seller; and
  • Whether the product being shipped is customized, built to specification, or off the shelf.

The global economy is fluid; firms will benefit from regularly examining its own customer base and assessing political, credit and foreign-exchange risks to determine which payment term best suits the situation. There are several sources that provide background information on the buyer’s country and their economy. Options that are available on the internet include:

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