In international trade, the three-letter acronyms known as Incoterms determine where the risk, cost, and responsibility transfer from the seller to the buyer. However, misuse or misunderstanding of these terms is the leading cause of cross-border commercial disputes. At Legal Sandbox Georgia, we provide specialized arbitration representation for importers and exporters locked in conflicts regarding who bears the financial burden when a shipment fails to clear Georgian customs. A simple misunderstanding between "DAP" (Delivered at Place) and "DDP" (Delivered Duty Paid) can result in tens of thousands of dollars in unexpected tax liabilities and demurrage fees, leaving parties arguing over who must pay the bill.
Our legal team conducts a forensic analysis of your sales contract and the applicable ICC Incoterms rules (2010 or 2020) to establish liability. For instance, under DDP, the seller is technically responsible for import clearance; however, in Georgia, a foreign entity often cannot clear goods without a local tax presence. When this logistical reality causes a blockage at the border, we litigate to determine whether the seller failed to fulfill their delivery obligation or if the buyer failed to provide necessary assistance. We meticulously map out the timeline of events against the transfer of risk points defined in the contract to shift the financial responsibility for the customs failure back to the opposing party.
We represent clients in commercial arbitration tribunals to recover damages caused by these breaches. Whether you are a Georgian buyer whose foreign supplier failed to deliver goods "duty paid," or an exporter whose buyer refused to accept delivery "at place," we build a case based on strict contractual interpretation and international trade norms. We fight to recover not only the value of the goods but also the ancillary costs incurred due to the delay, such as terminal storage fees, fines, and administrative penalties, ensuring that the specific Incoterm agreed upon is enforced to its full legal extent.
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