DIFFERENT INCOTERMS IN SPECIFIC COUNTRIES

                             DIFFERENT INCOTERMS IN SPECIFIC COUNTRIES


Now we all have a basic idea of what incoterms are and how they help in the import and export of goods. Incoterms however do have exceptions. For instance, US is the only country that accepts a customs bond. A customs bond is charged by the US customs department and protects the US government in case the importer has not paid any penalties or taxes. If such a case comes up then the goods are withheld by the US customs department.

Also when exporting goods from India, a withholding tax is to be paid. If the goods which are being exported is mentioned in the Second Schedule of Export Tariff, then no taxes are to be paid otherwise one should pay the withholding tax to get a clearance to export the goods.

While we have discussed India and US briefly there is also a third country which has specific Incoterms relating to trade. The country is UK. To import goods into UK one must have a deferment account. The deferment account in UK is used to pay VAT and Import duty for the goods being imported to UK. Deferment account can also be used to make monthly payments. All the payments are completed under the Duty Deferment scheme through a Deferment Approval Number (DAN). To use this scheme, the importer must be able to produce documents that guarantee that he or she can meet all the expenses of VAT and other duties.

So here we have seen three instances where Incoterms are specific to each country. However, in the European Union the customs procedures offer more leniency than other countries. So the bottom line is that you should always carefully look for the rules of the country you are trading with and then follow the procedures to avoid any kind of loss.
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