Why not to use the INCOTERMS DDP & Exworks to export from usa give 3 Research Paper

Why not to use the INCOTERMS DDP & Exworks to export from usa give 3 example - Research Paper Example For this reason, the USA should refrain from using the terms when exporting from the country. The term Delivered Duty Paid that is commonly abbreviated as DDP has far reaching implications on the seller of the products, whom in this case is represented by the US exporters. To begin with, it places immense costs on the seller that can otherwise be avoided. In this case, it is worth acknowledging that profit making is at the core of any business transaction. To attain this, costs should always be kept minimal. According to recent research, use of DDP implies that all costs pertaining to on carriage, pre-carriage and main carriage would be shouldered by the seller (Editor 59). For example, the US exporters of vehicle parts to Japan would be required to pay for the on carriage, pre carriage as well as main carriage costs. Comparatively, this would be more expensive than if they would not have quoted the term DPP on the freight. Fundamentally, Exworks is employed in notifying the buyer that the respective products which are packed well to meet the export standards are available to the individual buying them, at a specific time and named place. In this respect, it should be appreciated that the buyer is solely responsible the clearance of the exported products (Editors 76). Notably, the buyer may not be in position to carry out and complete all the export formalities either directly or indirectly. This can have direct negative impacts on the exporters who are required to adhere to export compliance regulations at all times. Since the inherent risk is uncertain, the exporters should simply not use the term when exporting from the USA. For example, if the word Exworks is included on the fruits being exported to South Africa, it implies that the exporters would be required to inform the receiver that the goods are packaged well. Supposing the