Your client, a US. company, has purchased 30 tons of Italian oranges from a seller in Sicily, Italy. The contract clause for delivery FOB, merchant vessel "The Godfather", harbor of Palermo, June 1".

On June 1 the seller brought the oranges to the harbor. The harbor authority did not allow the oranges to be loaded on the ship, as no valid Italian export license had been obtained. When the president of your client was informed of the problem, he immediately phoned the seller and urged the seller to obtain an export license.

The seller's president Carmine Canducci answered: "That, my friend, is your problem!"

Although your client, in fact, tried to obtain an export license, it was not possible to secure such in time before the boat left. The oranges rotted on the pier.

Your client seeks to receive back from the seller its down payment of 150,000,--. Will your client be successful? (hint: discuss only the Incoterm issue).