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Money on the Table
Posted: April 29, 2008
page 2 of 2It is important to note that any contract terms regarding transfer of title must conform to applicable tax and accounting standards, as well as financial reporting requirements imposed by the Sarbanes-Oxley Act and similar statutes. Each shipping contract that uses Incoterms is unique, and the parties must always specify that their contract is subject to Incoterms 2000. But proactively structuring contracts for the most advantageous transfer of title can provide a huge financial advantage to importers that pursue them.
Often importers feel they need to use Group C (including CIF) Incoterms, with all the problems and additional costs involved, and relinquish control of the freight to their suppliers in order to delay recording stock on their books. That simply is not the case, and knowledgeable importers who combine creative financial thinking with sophisticated computerized global shipment tracking can realize a substantial competitive advantage.
Simon Kaye is founder and CEO of Jaguar Freight Services, with operations and fully integrated door-to-door freight solution networks in Europe, North America, South America, Australasia, Asia, the Middle East and Africa. E-mail: firstname.lastname@example.org; www.jaguarfreight.com; 1-516-239-1900