Tariff Fallout: Mine Owner Blames China’s Actions, Not Trump’s, for Shutdown
Tariff Fallout: Mine Owner Blames China’s Actions, Not Trump’s, for Shutdown - Iron County Today
So many faces, so little time.
Really confused at the business owner saying his company is paying the tariffs. Did they get into a contract with a clause that makes the exporter bear the tariffs+fees to the destination country?? More likely I'm guessing that the buyer just sent a call saying the deal is off or had a strict price limit, but if it's the former case that's some remarkable business sense and foresight 🤦♀️
(I suppose it's also possible that China's tariff policy works a little differently. I'm not an expert on the subject)
If the terms on the contract are DDP (Delivery Duty Paid), which a lot of customers in China request, then the taxes and duties at the point of entry to China are paid by the exporter. You want to use terms DAP (Delivered at Place) and name the port or airport. The importer is then responsible for all local charges, including these sudden tariffs.
Is DAP the same as FOB?
They're similar, but in DAP the risk transfers at the named destination port whereas with FOB risk transfers once loaded at the origin port.
That makes sense, thank you
