Incoterms

Target audience

• Customer organizations;
• Supplier organizations;
• Supplier warehouse organizations.

Purpose

• Enables use of correct Incoterms in all Floriday domains

Guidance

• Available Incoterms in Floriday are EXW, DDP and FCA. Incoterms define the responsibilities of buyers and sellers in the arrangement of deliveries and the transfer of liability involved at various stages of the transaction.

• An Incoterm is specified in the SalesOrder.

• EXW (Ex Works) places full responsibility for cost and risk with the buyer. The grower (seller) makes the goods available at their warehouse for pickup by the buyer.

  • EXW may only be used when goods are picked up from growers in the Netherlands (NL), Belgium (BE) and Germany (DE).
  • In the case of EXW, VAT is charged based on the country of pickup. For instance, if a buyer picks up goods in Belgium, Belgian VAT is charged.

• DDP (Delivery Duty Paid) means that the grower (seller) is responsible for arranging and paying for transportation of the goods to their final destination (Typically a logistic hub or other location of the buyer). The responsibility shifts to the buyer at the moment of unloading.

  • DDP may only be used for delivery locations based in the Netherlands (NL), Belgium (BE) and Germany (DE).
  • In the case of DDP, VAT is charged based on the country where the delivery location is based in. For instance, if the goods need to be transported to Germany, German VAT is charged.

• FCA (Free Carrier) places responsibility with the grower (seller) for transport of goods to a destination specified by the buyer. The destination is typically an airport, shipping terminal or other location where the carrier operates.

  • Once the goods are unloaded at this specified location, responsibility shifts to the buyer.
  • FCA is typically used for deliveries outside of the EU. In these cases, 0% VAT applies.