Question
Read the following scenarios carefully. Consider where delivery takes place in each given situation and who is responsible according to the incoterm rules. 1.A Canadian
Read the following scenarios carefully. Consider where delivery takes place in each given situation and who is responsible according to the incoterm rules.
1.A Canadian exporter of farm equipment in Regina, Saskachewan, Canada has agreed to sell a large piece of machinery to a buyer in Idaho, USA referencing DDP Boise, Idaho, USA Incoterms 2020 in their contract of sale. The Canadian seller hired a specialist trucking company to deliver the oversized tractor on a flatbed trailer.
i.The shipment gets held up at the US border for 2 days because some import documents are missing. As a result, the transport firm bills the seller for extra days for additional travel time. According to the Incoterms rules, can the seller pass these costs to the buyer since they are associated with import documentation? Explain. (3 points)
ii.The truck finally passed through customs and arrived at the buyers site. The truck driver asked the buyer to maneuver the tractor down the ramps on the trailer, but the buyer declined and suggested it would be better for the specialist driver to drive the machine down the ramps to get it off the flatbed. The truck driver agreed but the tractor was not aligned properly, and as it was being offloaded, it tipped over causing extensive damage to the large machine. Are the losses associated with the damage to the machine the sellers or the buyers responsibility? Explain.
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