plant in Mexico
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Isabella has been talking about logistics to the manager of the plant in Mexico. He is concerned that his shipping department staff has not been correctly labeling shipments of pediatric HIV drugs bound for clinics, hospitals, and infirmaries throughout the developing world so that the risk of loss in transit passes from Pharma Heal Corporation to the buyer at the earliest possible point. She is concerned that he may not fully understand the terminology involved. Isabella gives you the task to have a video conference call with the plant manager and his shipping department staff to achieve the following objectives:
* Review the critical points for the passing of risk of loss from buyer to seller in the transportation and delivery process.
* Match those points to the appropriate International Chamber of Commerce (ICC) International Commercial Terms (INCOTERMS) for designating when the risk of loss asses.
* Advise the manager and his shipping staff as to the INCOTERMS that are the most favorable to Pharma Heal Corporation for the sale of the pharmaceuticals that are to be shipped to the buyer by common carrier.
Prepare your word-processed notes for this conference call. Isabella has asked you to copy her with your notes, so this should represent your best work.
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This posting gives you an in-depth insight into a plant in Mexico
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The critical point about passing of the risk from the seller to the buyer depends on the terms and conditions of the contract. The terms and conditions of the contract may have the provision that the risk passes from the seller to the buyer at the border (international border. In other words when the goods cross the border the risk passes on from the seller to the buyer. The place of delivery at the frontier is named in the contract. For instance, if Pharma Heal Corporation is selling its goods to a company in Mexico and the terms of the contract name the place on the border where the goods will cross over from the US to Mexico. The border will be the place where the risk passes over from Pharma Heal Corporation to the buyer.
The risk may pass from the buyer to the seller at when the ship arrives at the designated port. The goods become available for unloading to the buyer, the risk may pass on from the seller to the buyer depending on the contract between Pharma Heal Corporation and its buyer. ...
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