INCO TERMS 2018: COUNTRY OF ORIGIN AND COUNTRY OF SUPPLY

What is INCO terms 2018? The International Chamber of Commerce (ICC) is the body responsible for assigning meanings to international trade terms. Thus, the terms have international application. Moreover, the exact meaning and application may vary among countries. Consequently, the purpose of this article is to explain the trade terms Country of Origin and Country of Supply of goods.

INCO TERMS 2018: THE TERMS COUNTRY OF ORIGIN AND COUNTRY OF SUPPLY

Are you an importer or an import handling specialist in the Nigerian Logistics space? Have the bank ever rejected processing of your shipping documents due to wrong usage of trading terms? Perhaps, one of such cases is the wrong usage of the terms country of origin and country of supply. Yes, this issue is common with Form M processing. This article for INCO terms 2018 will clear any mix-up in the use of country of origin and supply. So, read everything in this article carefully.

Read Also: WHAT IS A PROFORMA INVOICE IN NIGERIAN CONTEXT?

INCO TERMS 2018: COUNTRY OF ORIGIN OF GOODS

Manufacturing country of goods is the same as the country of origin of such goods. As simple as this may sound, it has caused a lot of delay as a result of wrong usage. Sometimes, goods are supplied from where they were produced. However, this is not always the case. For instance, a supplier with warehouse in in France gathers commodities from across Europe, and sends them to Nigeria. The country of origin in this case is tagged various. Reason is because the goods come from different countries. Hence, the proforma invoice must sate the country of origin for each item.

INCO TERMS 2018: COUNTRY OF SUPPLY OF GOODS

The Country of Supply is the place where your cargo or shipment is coming from as stated on the pro forma invoice. Make no mistake this is not always the same with country of origin. Where goods are made are not necessarily where they are supplied. For instance I pick up a luggage produced in Nigeria to Ghana, and export to Gambia. Origin country is Nigeria, and supply country is Ghana.

Read Also: INCOTERMS: UNDERSTANDING SHIPPING TERMS IN NIGERIA

In Conclusion:

Usage of the terms country of origin and country of supply of commodities are often interchangeably in error. Correct usage of terms will eliminate delay in documentation with commercial banks. This article has amplified the difference between country of origin and country of supply as used in INCO term 2018. In addition, Vagmon Integrated Services is a specialty import handling company in Nigeria. Contact Vagmon Integrated today at +2349075526276

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