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Of course the preferred revolving globe and mapping would be open source. There are options on that.
Incoterms Payment Processing Dashboard
By Brent Woods
A Bitcoin Macroeconomics exclusive. Credit to Mr. Eric Martindale
Purpose: User Story
The purpose of the Incoterms Payment Processing Dashboard is to provide a solutions based system for international trade by way of Incoterms. These international standards are terms of sale for importers, exporters, freight forwarders, and that includes other factors including cost of goods, liability (insurance), transportation (air, ocean, rail, trucking), duties, taxes, and customs clearance, all based on terms. The incorporation of Bitcoin and cryptocurrency to the Incoterms and dashboard system will work to include payment in Bitcoin, while allowing for any Incoterms to be reversed or any option. Incoterms are clearly defined by standard. Bitcoin and a dashboard system will allow for currency adjustment and back into hard currency, but by utilizing Bitcoin and cryptocurrency, fees will allow for increased competition, immediate payment, and lesser fees for the entire import and export experience, be it any combination of transport, and of course this will include total cost of goods and product, service, and all via letter of credit if required if not via smart contract and blockchain technology. Purchasing Departments, Importers, Exporters, trade associations, freight forwarders, airlines, ocean liners, rail, trucking companies, and even customhouse brokers, warehouses, and financial services companies can benefit from the solutions and capabilities of this dashboard, while also offering features for combined orders or cooperative purchasing power to force better quality, service, and competition in a global marketplace. Bitcoin and blockchain offers this capability, and the incoterms payment processing dashboard will be the user system that may encompass electronic data interface, if not render it obsolete. Users will not only be able to pay in Bitcoin per “incoterms” but they will be able to utilize this as a service to place orders with manufacturers, track shipments, or utilize public tariffs and quotations for all aspects of cost of goods, services, transportation, insurance, and total costs of supply chain logistics. Enter in smart contracts and blockchain technology, this dashboard system will offer advancement of world trade and the acceptance of Bitcoin and cryptocurrency by way of international standards currently accepted and clearly defined.
Importer – As an importer I want to pay in Bitcoin to save in transaction fees and currency adjustment factor (hard currency) and to then convert back to hard currency.
I also want the ability to change the terms of sale for the competitive edge, and take control of that via dashboard system to work with freight forwarders and transport companies of my own choosing, if not source from other commodity suppliers.
I also want to be able to track all my shipments coming inbound via rail, truck, ocean, or air, complete with status update.
I also want to be ensured via contract and Letter of Credit (L/C).
I also want my customs broker to have access to my dashboard.
Exporter – As an exporter I want to utilize the incoterm dashboard to track all orders and be provided with status updates for all transport methods.
I wish to accept Bitcoin, yet I want to eliminate volatility and have ability to convert to hard currency.
I wish to offer incoterms to increase business and new sales by offering ability to pick incoterms upon importers (customers) choosing.
I wish to allow for bulk purchases from multiple buyers or cooperatives and trade associations with commitment via smart contracts with unalterable blockchain technology.
I wish to accept offers for orders, and commit via contract with the ability to sign letters of credit or specific to incoterms.
I need proof of contract in order to meet capacity in manufacturing environment in order to meet demand.
Freight Forwarder – This organization wishes to utilize the incoterms dashboard for our customers that wish to pay or accept Bitcoin.
We need the ability to track and trace our customers orders or container loads, and preclear customs via electronic data interface or utilize blockchain technology in order to preclear customs.
We need the ability to convert Bitcoin to hard currency, or hard currency to Bitcoin, but that includes all international currencies, while giving option of other cryptocurrencies in a dashboard.
We need the ability to publish our tariffs and rates for each incoterm in order to utilize the incoterm dashboard.
We need to provide total services and capabilities and supply chain logistics, and that includes insurance, trucking, customs clearance, warehousing, from door to door or port to port depending on incoterms.
We need the ability to utilize published tariffs of airlines, trucking companies, ocean liners, with the elimination of errors meaning the ability to guarantee our pricing and quotations from our carriers, be it rail, ocean, air, or trucking, and that includes fuel surcharge.
Operationally, we need the ability to mark up rates published by the services related to ocean freight (less than container load, full container load, and break bulk), air freight, trucking (less than truckload and full truckload), warehousing, insurance, and every aspect per international standard (incoterms).
We want the ability to cater to bulk purchasing and offer volume discounts (varying prices) for the acceptance in Bitcoin and the management of the dashboard.
We want the ability to provide monthly reports or by transaction for proof of payment and delivery.
We need the ability to get signed routing orders from shippers for acceptance in Bitcoin and wish we could do it via the dashboard with opportunity to communicate and we are willing to pay in Bitcoin to utilize this feature.
Trade Association – As a trade association working for economic development of our region of the world, we desire the ability to accept Bitcoin as a means of payment
We wish to accept bulk purchases from multiple buyers that commit contractually or via smart contract and will provide acceptance contractually.
We wish to provide an offer for bulk buys from our trade association be it 1 container or 500 or specific terms be it weekly or monthly or annual commitment but by way of smart contract.
We wish for the ability to utilize the dashboard for the incoterms.
We wish the ability for our buyers (or importers) to be able to utilize the dashboard for the incoterms.
We wish the ability to select freight forwarders, ocean liners, airlines, and customs brokers that will accept Bitcoin or offer management of the dashboard in respective countries worldwide.
Purchasing Departments, Supply Chain Management – We want the ability to place purchase orders with our vendors and manufacturers via the dashboard.
We want to pay in Bitcoin and the ability to convert currency.
We want the ability to utilize the dashboard for our vendors or lane segments that will not accept Bitcoin and streamline our purchasing but want to save money via transaction fees and thus Bitcoin.
We want proof of delivery.
We require status updates of freight in order to meet manufacturing requirements or deadlines.
We want the ability to utilize the dashboard worldwide.
We want the ability to have our freight forwarder or airlines or ocean freight companies to have access to the management of our dashboard here and abroad, specific to the need.
We want to seek new suppliers and wish to pool our purchasing power with others to purchase bulk purchasing with other purchasing departments of commodities, with the ability to commit via smart contract in order to get better pricing on commodity items, goods, and services.
Airline, Ocean Liner, Trucking Company, Transportation Broker – We want the ability to publish our tariffs or pricing as we will accept Bitcoin.
We require the ability to convert back to hard currency or any international currency.
We need the ability to track shipments and require proof of delivery via the dashboard.
We desire the ability to publish our tariffs and have the ability to update them.
We desire the ability to include fuel surcharge amounts.
We need the ability to agree to contracts with buyers and customers of our transport services.
We need the ability to formulate offers into contractual agreements via this dashboard in order to eliminate non payment via buyers through the dashboard.
Customhouse Brokers – We need the ability to preclear through customs be it electronic data interface but will consider smart contract and blockchain technology if capable in order to clear goods for our clients.
We need the ability to transact both in hard currency or international currencies but also in Bitcoin for duties and taxes.
As customs brokers we can accept Bitcoin for our services and wish to utilize the dashboard, but as required by laws will require the ability to convert from Bitcoin to hard currency in order to pay duties and taxes.
Insurance Companies – We require contractual agreement for liability purposes and wish to utilize dashboard for smart contracts.
We need to be able to publish our rates and quotations in order to insure products, goods, and liability, for all modes of transportation.
We wish to accept Bitcoin and secure new business and will work within all incoterms.
We need the ability to offer specific lanes (or country) due to requirements by law including maritime law.
We require the ability to pay claims via smart contract and blockchain technology as much as accept Bitcoin.
Other: A dashboard scenario is one thing, a functional platform for all inbound and outbound logistics across the globe, in a viewable format that describes the “incoterms” or terms of sale. That is the benefit for any importer or exporter, or service provider, or any provider or purchasing group that relies on domestic transport as well. It is another to create the state of the art website and to be the leader in changing international banking as it relates to transit of goods and commodities.
Google Earth is interesting in that it could be incorporated, be it a moving earth or a map, or both, but by incorporating this feature, it could be segmented to fit the needs of each “account” for tracking all their worldwide traffic, and it may be possible to break that lane segment down to the responsibilities of both the buyer or the seller for existing orders, or this feature could also be for sourcing and arriving at competitive quotes should incoterms be changed or for an “offer” or “booking” based on contract or “smart contracts”. Say a shipper in Rotterdam was responsible for transport to the port, this could be mapped for that leg of transportation from the origin to the port, while the map could also display the responsibility from once over the ship all the way to the door of the importer, say in Los Angeles. Color coded “lanes” could indicate responsibility and indicate by order or purchasing order total costs of transport to arrive at true costs. Likewise any incoterm could be used, to arrive at true costs should total reversal be required or to look at other options to improve pricing, service, or to even pool purchasing power with others via “smart contract” to establish better pricing, via contract or contract offer. This would entail not only the transport costs, but also cost of goods and commodies, and all services along the way, including insurance. Visualizing the mapping via a revolving globe would be interesting, but that could also be translated into a map feature in flatland, but both flatland (1D map) and revolving globe could be used specific to account, or all current orders in transit, or a complete history by account (ie freight forwarder or airline), or commodity even specific commodity code (as established by customs authorities). This mapping feature could coincide with the dashboard that would be utilized for data, contracts, pricing, quotations, and history. The map feature would simply show it by lane segment and in color coordination to indicate incoterms and for visual aspect, but it just another tool for any department involved.
In this scenario, all points of origin and all final destination, every port or airport (depending on lane and mode of transport), every warehouse, freight forwarder (or transport mode) could be highlighted and noted.
Every aspect of cost (in Bitcoin or other cryptocurrency, including hard currency) could be broken down (if for quotation of services) including for cost of goods specific to purchase order or “offer” to buyer, or agreed upon sell order (specific to contract or quotation) while this could also be broken down specific to Bitcoin address or physical address if “pooled purchasing” can be worked under “smart contract”.
If this were to occur, at any moment in time, an importer or exporter could see in real time the total costs if in hard currency (country of origin or country of destination) versus total costs if in Bitcoin or any cryptocurrency. Given the transaction fees, total costs, from door to door, it will be recognizable the cost differential between hard currency and Bitcoin. This is where competition comes in between competing currencies. And of course this dashboard is capable of adjusting back to hard currency as required, be it via batch or specific to order, meaning one at a time, but it could also be done at end of the day, but specific to needs and requirements of any user of the dashboard.
© Brent Woods and www.bitcoinmacroeconomics.com, [2016 – 2050]. Unauthorized use and/or
duplication of this material without express and written permission from this site’s author and/or owner
is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to
[Brent Woods] and [BitcoinMacroeconomics.com] with appropriate and specific direction to the
According to Wikipedia:
The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
The Incoterms rules are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. As such they are regularly incorporated into sales contracts worldwide.
First published in 1936, the Incoterms rules have been periodically updated, with the eighth version— Incoterms® 2010 ’—having been published on January 1, 2011. “Incoterms” is a registered trademark of the ICC.
National Incoterms chambers.
1 Incoterms 2010
2 Incoterms in Government Regulations
3 Rules for any mode of transport
3.1 EXW – Ex Works (named place of loading)
3.2 FCA – Free Carrier (named place of delivery)
3.3 CPT – Carriage Paid To (named place of destination)
3.4 CIP – Carriage and Insurance Paid to (named place of destination)
3.5 DAT – Delivered at Terminal (named terminal at port or place of destination)
3.6 DAP – Delivered at Place (named place of destination)
3.7 DDP – Delivered Duty Paid (named place of destination)
4 Rules for sea and inland waterway transport
4.1 FAS – Free Alongside Ship (named port of shipment)
4.2 FOB – Free on Board (named port of shipment)
4.3 CFR – Cost and Freight (named port of destination)
4.4 CIF – Cost, Insurance & Freight (named port of destination)
5 Allocations of costs to buyer/seller according to Incoterms 2010
6 Previous terms from Incoterms 2000 eliminated from Incoterms 2010
6.1 DAF – Delivered at Frontier (named place of delivery)
6.2 DES – Delivered Ex Ship
6.3 DEQ – Delivered Ex Quay (named port of delivery)
6.4 DDU – Delivered Duty Unpaid (named place of destination)
7 See also
9 External links
Incoterms 2010 is the eighth set of pre-defined international contract terms published by the International Chamber of Commerce, with the first set having been published in 1936. Incoterms 2010 defines 11 rules, down from the 13 rules defined by Incoterms 2000. Four rules of the 2000 version (“Delivered at Frontier”, DAF; “Delivered Ex Ship”, DES; “Delivered Ex Quay”, DEQ; “Delivered Duty Unpaid”, DDU). are replaced by two new rules (“Delivered at Terminal”, DAT; “Delivered at Place”, DAP) in the 2010 rules.
In the prior version, the rules were divided into four categories, but the 11 pre-defined terms of Incoterms 2010 are subdivided into two categories based only on method of delivery. The larger group of seven rules may be used regardless of the method of transport, with the smaller group of four being applicable only to sales that solely involve transportation by water where the condition of the goods can be verified at the point of loading on board ship. They are therefore not to be used for containerized freight
Incoterms in Government Regulations
In some jurisdictions, the duty costs of the goods may be calculated against a specific Incoterm (for example in India, duty is calculated against the CIF value of the goods, and in South Africa the duty is calculated against the FOB value of the goods). Because of this it is common for contracts for exports to these countries to use these Incoterms, even when they are not suitable for the chosen mode of transport. Care must be exercised to ensure that the liability issues are addressed by negotiation with the customer. \
Rules for any mode of transport
EXW – Ex Works (named place of loading)
The seller makes the goods available at their premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. Either the seller does not load the goods on collecting vehicles and does not clear them for export, or if the seller does load the goods, he does so at buyer’s risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.
The buyer arranges the pickup of the freight from the supplier’s designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is also responsible for completing all the export documentation.
These documentary requirements may cause two principal issues. Firstly, the stipulation for the buyer to complete the export declaration can be an issue in certain jurisdictions (not least the European Union) where the customs regulations require the declarant to be either an individual or corporation resident within the jurisdiction. Secondly, most jurisdictions require companies to provide proof of export for tax purposes. In an Ex Works shipment, the buyer is under no obligation to provide such proof, or indeed to even export the goods. It is therefore of utmost importance that these matters are discussed with the buyer before the contract is agreed. It may well be that another Incoterm, such as FCA seller’s premises, may be more suitable.
FCA – Free Carrier (named place of delivery)
The seller delivers the goods, cleared for export, at a named place. This can be to a carrier nominated by the buyer, or to another party nominated by the buyer.
It should be noted that the chosen place of delivery has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the seller’s premises, the seller is responsible for loading the goods on to the buyer’s carrier. However, if delivery occurs at any other place, the seller is deemed to have delivered the goods once their transport has arrived at the named place; the buyer is responsible for both unloading the goods and loading them onto their own carrier.
CPT – Carriage Paid To (named place of destination)
CPT replaces the venerable C&F (cost and freight) and CFR terms for all shipping modes outside of non-containerised seafreight.
The seller pays for the carriage of the goods up to the named place of destination. Risk transfers to buyer upon handing goods over to the first carrier at the place of shipment in the country of Export. The seller is responsible for origin costs including export clearance and freight costs for carriage to named place of destination (either final destination such as buyer’s facilities or port of destination has to be agreed by seller and buyer, however, named place of destination is generally picked due to cost impacts). If the buyer does require the seller to obtain insurance, the Incoterm CIP should be considered.
CIP – Carriage and Insurance Paid to (named place of destination)
This term is broadly similar to the above CPT term, with the exception that the seller is required to obtain insurance for the goods while in transit. CIP requires the seller to insure the goods for 110% of their value under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters (which would be Institute Cargo Clauses (C)), or any similar set of clauses. The policy should be in the same currency as the contract.
CIP can be used for all modes of transport, whereas the equivalent term CIF can only be used for non-containerised seafreight.
DAT – Delivered at Terminal (named terminal at port or place of destination)
This term means that the seller covers all the costs of transport (export fees, carriage, unloading from main carrier at destination port and destination port charges) and assumes all risk until destination port or terminal. The terminal can be a Port, Airport, or inland freight interchange. Import duty/taxes/customs costs are to be borne by Buyer.
DAP – Delivered at Place (named place of destination)
Inco Terms 2010 defines DAP as “Delivered at Place” that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.
When does the risk passes from seller to buyer under DAP terms?
Under DAP terms, the risks passes from seller to buyer from the point of destination mentioned in the contract of delivery by seller.
Once goods are ready for shipment, the necessary packing is done by seller at his own cost, so as to reach the material up to final destination safely. The materials are moved to customs location opted by seller at exporting country at his own expenses under DAP. All necessary legal formalities in exporting country is completed by seller at his own costs and risks to move the goods to destination mentioned in DAP. Apart from necessary customs clearance procedures and formalities at exporting country, the insurance up to the destination mentioned in DAP terms is arranged by seller at his own costs and risks. In a DAP terms, necessary carriage expenses with any terminal expenses are paid by seller up to the destination mentioned. The necessary unloading cost at final destination has to be borne by seller under DAP terms, if specifically not mentioned in contract. If unloading expenses can not be met by seller, better terms of shipping can be DAT (Delivered at Terminal of place mentioned)
Once after arrival of goods at destination mentioned in DAP terms, the customs clearance at importing country needs to be completed by the buyer at his own cost and risk. Transportation from the point of destination mentioned in DAP terms to final destination of buyer, need to be undertaken by seller at his own cost and risks. Under DAP terms of shipping, the seller meets all expenses and risks to deliver the goods up to the destination mentioned in the contract. From such point of location mentioned in DAP terms, the buyer undertakes all risks and responsibilities to reach the goods at his premises at his own expenses.
DDP – Delivered Duty Paid (named place of destination)
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm “Free In Store (FIS)”. This term places the maximum obligations on the seller and minimum obligations on the buyer. With the delivery at the named place of destination all the risks and responsibilities are transferred to the buyer and it is considered that the seller has completed his obligations 
Rules for sea and inland waterway transport
To determine if a location qualifies for these four rules, please refer to ‘United Nations Code for Trade and Transport Locations (UN/LOCODE)’.
The four rules defined by Incoterms 2010 for international trade where transportation is entirely conducted by water are as per the below. It is important to note that these terms are generally not suitable for shipments in shipping containers; the point at which risk and responsibility for the goods passes is when the goods are loaded on board the ship, and if the goods are sealed into a shipping container it is impossible to verify the condition of the goods at this point.
Also of note is that the point at which risk passes under these terms has shifted from previous editions of Incoterms, where the risk passed at the ship’s rail.
FAS – Free Alongside Ship (named port of shipment)
The seller delivers when the goods are placed alongside the buyer’s vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export, which is a reversal from previous Incoterms versions that required the buyer to arrange for export clearance. However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale. This term can be used only for sea or inland waterway transport 
FOB – Free on Board (named port of shipment)
See also: FOB (Shipping)
FOB means that the seller pays for delivery of goods to the vessel including loading. The seller must also arrange for export clearance. The buyer pays cost of marine freight transportation, bill of lading fees, insurance, unloading and transportation cost from the arrival port to destination. The buyer arranges for the vessel, and the shipper must load the goods onto the named vessel at the named port of shipment according to the dates stipulated in the contract of sale as informed by the buyer. Risk passes from the seller to the buyer when the goods are loaded aboard the vessel.
CFR – Cost and Freight (named port of destination)
The seller pays for the carriage of the goods up to the named port of destination. Risk transfers to buyer when the goods have been loaded on board the ship in the country of Export. The Shipper is responsible for origin costs including export clearance and freight costs for carriage to named port. The shipper is not responsible for delivery to the final destination from the port (generally the buyer’s facilities), or for buying insurance. If the buyer does require the seller to obtain insurance, the Incoterm CIF should be considered. CFR should only be used for non-containerized seafreight; for all other modes of transport it should be replaced with CPT.
CIF – Cost, Insurance & Freight (named port of destination)
This term is broadly similar to the above CFR term, with the exception that the seller is required to obtain insurance for the goods while in transit to the named port of destination. CIF requires the seller to insure the goods for 110% of their value under at least the minimum cover of the Institute Cargo Clauses of the Institute of London Underwriters (which would be Institute Cargo Clauses (C)), or any similar set of clauses. The policy should be in the same currency as the contract. CIF can be used by any transport by sea and air not limited to containerized or non-containerized cargo and includes all charges up to the port/terminal of entrance. CIP covers additional charges at the port/terminal of entrance.
Allocations of costs to buyer/seller according to Incoterms 2010
This term can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.
DES – Delivered Ex Ship
Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading the goods and any duties, taxes, etc. are for the Buyer. A commonly used term in shipping bulk commodities, such as coal, grain, dry chemicals; and where the seller either owns or has chartered, their own vessel.
DEQ – Delivered Ex Quay (named port of delivery)
This is similar to DES, but the passing of risk does not occur until the goods have been unloaded at the port of discharge.
DDU – Delivered Duty Unpaid (named place of destination)
This term means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. A transaction in international trade where the seller is responsible for making a safe delivery of goods to a named destination, paying all transportation expenses but not the duty. The seller bears the risks and costs associated with supplying the goods to the delivery location, where the buyer becomes responsible for paying the duty and other customs clearing expenses.
International trade law
Uniform Commercial Code
United Nations Convention on Contracts for the International Sale of Goods
United Nations Code for Trade and Transport Locations (UN/LOCODE)