Inco Terms Nb Power Case Essay

Words: 938
Pages: 4

Topic : INCO Terms

What costs seem likely to be incurred and by whom? Who might be liable to cover the costs? Is NB Power likely to get all of their costs covered? If not which costs are at risk?
Diagram the parties. Estimate from the limited data who is responsible? Identify issues.
Sol:
The following costs would be incurred: 1. Replacement Cost: Cost involved in manufacturing the new turbines. 2. Delay Cost: As it would take another 1 year to manufacture the new turbines which requires NB power to get the old rotors re installed. 3. Loss of Revenue: As the new turbines were expected to increase the
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Costs Incurred by Buyer (NB Turbines): * Insurance cost: Insurance is procured by Seller, paying minimum cover insurance for 110% of value of contract would be paid by insurance bought by seller + if there was any additional insurance was bought by NB Turbines. * Repair Cost, Delay cost, Import, Duties, Taxes, Documentation cost, Filing Claim, Loss of Time, Loss of revenue, Re installation cost of the old turbines which they had taken out in anticipation of the new ones, Carriage charges for shipping the turbines back to UK for repair and bring them back UK for repair and bring them back, also for the shipping from St .John to Pt Lepreau.
DDU Point Lepreau: Delivered Duty Unpaid Point Lepreau
Costs Incurred by Buyer (NB Turbines): would be as follow: import clearance, Transport to destination, loss of revenue, filing claims, Pre- Inspection for the repaired or/and new turbines. Import clearance, Admin cost
Costs Incurred by Seller(Siemen’s): * Replacement Cost: Cost of PO, Seller would have to pay for the new turbines * Insurance Cost: Neither seller or buyer has the obligation of insurance, so the insurance would be claimed by seller or/and buyer who so ever bought it. * Lawyer fees * Delivery Cost, Repair Cost, Delay cost, Export, Duties, Taxes, Documentation cost, Filing Claim,