INCOTERM “FOB”, ITS CONCEPT AND APLICATION FOR THE CALCULATION OF THE GENERAL IMPORT TAX.- The “incoterms”, as international commerce terms, constitute an ensemble of international rules that allow an easy interpretation of the mainly employed terms at international sales of goods agreements. Said rules designate the modalities of the sale of goods that affect mainly the location for the delivery and the moment in which the risk of loss or deterioration of the goods is transmitted, but they also refer to other aspects of great practical importance, as the obligation to hire transportation or insurance, the obligation to pay the transportation expenses, and the loading and unloading expenses, and the obligation to do the procedures and pay all the corresponding expenses and taxes for the exportation or importation of the goods. Thus, the term FOB, (FREE ON BOARD, FREE ON BOARD) means that the seller shall place the goods on board of the ship chosen by the buyer at the agreed port of shipment. Moreover, the obligations of the buyer consist in designate or reserve the ship and run with the transportation and risk of the goods expenses, as of the time in which the goods have trespassed the ship’s rail. Therefore, if the parties agree under the FOB rule, the responsibility of the foreign seller concludes at the time in which the goods are placed at the buyer’s disposition at the vehicle that transports the goods and in the case of the expenses that the export generates in its territory, these are included in the price that was paid for it; consequently, if the provider delivers the goods at the northern border of our country, as of said moment, and with regard to the expenses that are generated by its entry and final destination at national territory, which are at the buyer’s charge. Thus, when the transaction has been agreed under the mentioned “incoterm”, the expenses generated at national territory that have been billed or are broken down in a separate manner from the payed price, as it is established under subsection b) of section II of article 66, in relation to article 64 of the Customs Law, will not be increasable, for effects of the calculation of the general importat tax. (4)

Proceeding No. 14820/01-17-07-3/445/02-S1-01-03.- Resolved by the First Section of the Superior Chamber of the Federal Court of Tax and Administrative Justice, in session of July 2nd, 2002, by majority of 3 votes in favor and 1 vote against: Reporting Judge: Luis Humberto Delgadillo Gutiérrez.- Secretary: Lic. Magdalena Judith Muñoz Ledo Belmonte. (Thesis approved in session of July 2nd, 2002)

R.T.F.J.F.A. Fifth Era. Year II. No.24. December 2002. pg. 271


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