Incoterms and Quality Control
While Incoterms define delivery terms and responsibilities, they do not specify quality control requirements. Understanding quality control responsibilities is essential for both buyers and sellers in international trade.
Key Points to Remember
- Incoterms do not cover quality specifications
- Quality requirements must be specified separately
- Inspection timing should align with delivery terms
- Quality standards should be clearly defined
Quality Control by Incoterm
EXW (Ex Works)
Under EXW:
- Seller's premises is the delivery point
- Buyer should inspect goods before taking delivery
- Quality issues should be identified at seller's premises
- Documentation of quality should be provided
DDP (Delivered Duty Paid)
Under DDP:
- Seller delivers to buyer's premises
- Quality inspection can occur at destination
- Seller bears all risks until final delivery
- Quality documentation should accompany goods
Best Practices
- Define quality specifications clearly
- Specify inspection requirements
- Document quality standards
- Establish inspection procedures
- Maintain quality records
Quality Documentation
- Quality certificates
- Inspection reports
- Test results
- Compliance documentation
- Quality control procedures
Common Challenges
- Different quality standards
- Inspection timing issues
- Documentation discrepancies
- Quality dispute resolution
- Cost of quality control