Full question:

I am dealing with a D2 agreement in China and my purchaser lacks a D2 import license. I have sourced another company with the proper credentials but they are an unknown and I fear I may get scooped for my fee. How and what is best method to save myself from this problem?

Answer:

[Currently I am dealing with a D2 transaction out of China and the purchaser I have is lacking a D2 import license] –

What does this have to do with you carrying out your transaction?

The Incoterms200 rules of delivery are quite upfront on these situations – the product provider is accountable – and so is the purchaser – the purchaser has to make sure they have import certification and this has zero to do with the product provider.

The provider must be certain they are in possession of any export certification…etc. If the purchaser pays for product, endorses the agreement and issues DLC but falls short of acquiring the import certification then this is his headache, the DLC still goes forward at site depository. If he indeed endorsed the agreement and reneges on his promise to perform due to an inability to acquire proper certification, this places him squarely in violation of the terms of the agreement and he is now in some very deep and hot water.

If he has failed to endorse the agreement and he cannot acquire the import certification than there simply is no agreement.

It is just that simple not at FOB/ CFR or CIF sales – if the goods were processed via DEQ Incoterms, then this might potentially be your problem and potential liability, based upon the way the agreement is written up – since intermediaries are not permitted to transact a delivery DEQ agreement. [it is my assumption that this is not a DEQ delivery term].