Importing Baking Mixture “Nuss Kuchen” from Germany into the United States
1. Terms of Sale
With regard to the type of contract, for this trade of product, which is of relatively small volume
and weight, the appropriate incoterm is, in my opinion, CFR which is the abbreviation for “Cost
& Freight”. CFR means that Dr. Oetker as the seller of the product delivers the “Nuss Kuchen”
to the vessel with which it will be transported from the port in Germany, in this case
Bremerhaven, to the port in the United States, which is located in New York in this case study.
Moreover, Dr. Oetker arranges the transport and pays all costs and freight to the named
destination port. Meanwhile, I, as the importer, have the risk as soon as the goods are on board
The main reason why I chose this incoterm is that it makes it the most convenient for me as a
small importer who is not really long working in this kind of business. I directly know the whole
price I have to pay for purchasing the products (except of insurance which won’t be really high
costs) from Dr. Oetker. Furthermore, Dr. Oetker as a huge brand employs expert with more
knowledge about how to transport its product properly. Nonetheless, I think it is a better deal for
both parties that I organize the insurance of the product during its transportation because Dr.
Oetker does not have experience with international insurance costs either because they did not
export to countries yet that are that far away located from Germany as the United States.
Due to the fact that the “Nuss Kuchen” is not a perishable good, there is no special packing
needed. When Dr. Oetker sells this kind of baking mixtures to retailers in Germany, it is packed
in boxes with 12 baking mixtures per bigger box which would be, assuming that I will buy 2100
baking mixtures as seen earlier in this assignment, 175 of those boxes. These bigger boxes are
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