Pictured above: Nicole Howarth, managing director of
Midlands-based Global Freight
Businesses planning to export and import in 2011 need to be
aware of new rules introduced this month affecting the sale and
movement of goods worldwide, a freight forwarder has warned.
Nicole Howarth, managing director of Midlands-based Global
Freight, said the new Incoterms rules, introduced on January
1 2011, affect every business which wishes to transport goods,
regardless of the size of the consignment.
Brought in to help regulate shipping and simplify the
complexities of trading abroad, the Incoterms are an
international standard regulating the costs, risks and
practical arrangements of buying and selling goods and services
with regard to their transport.
Nicole explained: "These are the first significant changes to
Incoterms in the last ten years, seeing four rules abolished and
two new rules introduced, including new regulations concerning
cargo security and insurance.
"Although the Incoterms have been reviewed to make the
transportation of goods easier to understand, it is vital that
companies are aware of the rules or they could find themselves
experiencing problems ranging from bearing extra cost to being
exposed to increased risk over security clearances."
Although the rules surrounding security and the scanning of
containers have not been changed, both sellers and buyers are now
required to provide extra information to allow the import and
export of goods and to enable carriers and freight forwarders to
transport them.
"The rules reduce or remove uncertainties arising from different
interpretations of commercial terms by specifying the obligations
of seller and buyer, besides indicating who bears what costs, when
and how the property passes and when the risk passes from seller to
buyer."
Nicole, who also offers a consultancy service to companies
trading internationally, said it was vital companies interpreted
the new regulations correctly.
She added: "In the past, we have been called in to help when
companies have experienced problems with exporting goods, and most
of the time it's because the paperwork has been wrongly completed
or the incorrect procedures followed. It is always more
cost-effective to get everything in order from the start,
especially considering the introduction of new regulations which
companies may not be familiar with.
"New rules should be specifically incorporated into the relevant
contract otherwise they will be void. Also, businesses exporting
and importing should make sure the wording in the contract is
correct otherwise they risk potentially expensive mistakes."
Experts in export, import and cross trade delivery, contracting
and packaging by air, sea or road, award-winning Global Freight can
provide extensive guidance and advice on the new Incoterms.
The company can help users efficiently choose the right rule for
each transaction, help choose the most suitable rule in relation to
the mode of transport, advise on the use of electronic procedures,
provide information on security-related clearances for shipments
and advise on the use of Incoterms 2010 in domestic trade.