Freight & Delivery
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1. Shipment Transactions
All website shipment transactions and freight costs are in adherence with shipment incoterm "CIP - Destination". More information on incoterms defined can be found at the International Chamber of Commerce website. https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/
a. Shipment Contract
All items purchased from Electric Motor Wholesale, Inc. are made pursuant to a shipment contract. We do our best to help resolve these occasional issues, but this means the risk of loss and title for such items pass to you upon our delivery to the carrier. Electric Motor Wholesale, Inc. is not responsible or liable for any damage or liabilities arising from shipment.
b. Missing or Damaged Shipment
Any missing or damaged shipment claims must be submitted to the shipment carrier for resolution. Once you have initiated your claim with the carrier, you can contact Electric Motor Wholesale Inc with the claim number to further resolve the order fulfillment.
c. Shipping Times
Shipping times and dates provided during checkout are estimates provided via API with the selected shipment carrier. Electric Motor Wholesale Inc will do everything it can to meet estimated dates but cannot make guarantees for carrier performance.
d. Service Area
Currently, www.electricmotorwholesale.com only processes domestic shipments. International quoting and export shipping are available and must be quoted by an agent by submitting a request to quotes@electricmotorwholesale.com to be handled offline. Quoted shipment methods and incoterms will be stated on the quotation.
2. Incoterms
Electric Motor Wholesale Inc currently only conducts business with 3 of the 11 incoterms: CIP for quoted shipments, EXW for those customers who wish to use their own freight forwarder or shipment account to export, and DDP for small-parcel shipments where duties and taxes are prepaid online.
a. Exworks (EXW)
Exworks is a term used in shipping arrangements where the seller is only required to deliver goods at a predetermined location, and the buyer bears responsibility for shipping costs. Along with these costs, the buyer assumes responsibility for the related risks of the goods which may include anything from customs regulations to loading and transferring to other ships.
The seller is only required to safely package the goods, label them appropriately, and deliver them to the previously agreed-upon location; in our case this will be our US warehouse located in Delaware.
Once the buyer has the goods, it is up to the buyer to cover any expenses and account for any risks that pertain to the goods. Risks could include loading the products onto a truck, transferring them to a ship or plane, dealing with customs officials, unloading them at their destination, and storing or reselling them. Even if the seller helps the buyer by, for example, loading the product onto a ship, it's still up to the buyer to pay up if anything goes wrong during the loading.
aa. Pricing
Many customers confuse EXW with a pricing term when it has no impact or relation to product pricing.
So, what is it?
Exworks (EXW) is an international commerce term (incoterm) that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs and arrangements. Exworks (EXW) is one of the 11 current incoterms, a set of standardized international trade terms that are published by the International Chamber of Commerce (ICC). The ICC recently updated the incoterms in 2020 and key changes are highlighted here.
Incoterms provide a universal set of rules and guidelines that help facilitate trade. In essence, they provide a common language traders can use to set the terms for their trades. Buyers and sellers can use Incoterms in a variety of activities necessary to conduct business. Typical activities that call for the use of Incoterms include filling out a purchase order, labeling a shipment for transport, completing a certificate of origin, or documenting a free carrier agreement (FCA).
An overview of all incoterms can be found on the official US trade website Know Your Incoterms (trade.gov).
ab. My Responsibilities
If you elect to conduct Exworks business with Electric Motor Wholesale Inc., you will be responsible for the following:
- EMW Provides shipment details: Once the order is ready for collection at our warehouse, we will provide the customer with shipment details (package type, weight and dimensions, collection location/hours, and HS Code) to make shipment arrangements to the email on the order.
- Customer makes collection arrangements: You, as the customer, just became the shipper in practice (account holder of shipment) and will utilize the provided shipment information to make your collection arrangements. Electric Motor Wholesale Inc remains the U.S. Principal Party in Interest (USPPI) for export documentation purposes.
- Customer provides shipping labels/BOL to EMW: Once collection arrangements are completed, you must supply us with shipment labels/BOL.
- Using a freight forwarder: In the case of using a freight forwarder, you will provide the freight forwarder with shipment details received from us and advise them to contact us via email to finalize arrangements.
- Export Documents: Electric Motor Wholesale Inc will only provide Invoice, packing list, and SLI (upon request) to customer or freight forwarding service to facilitate these arrangements.
- If you require Certificates: Certificates for import (origin, conformance) must be requested at time of quotation or order placement so we can add them to the invoice and request from the manufacturer. If requested after payment, we cannot guarantee availability.
b. Carrier and Insurance Paid (CIP)
Carriage and Insurance Paid To (CIP) is when a seller pays freight and insurance to deliver goods to a seller-appointed party at an agreed-upon location. The risk of damage or loss to the goods being transported transfers from the seller to the buyer as soon as the goods are delivered to the carrier or appointed person.
c. Delivered Duty Paid (DDP)
DDP indicates the seller assumes all the risk and transportation costs. The seller must also clear the goods for export at the shipping port and import at the destination. Moreover, the seller must pay export and import duties for goods shipped under DDP.
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