Alternative Incoterms Broomhill is in the process of negotiating a sales contract with a new purchaser in America for the supply of a large number of lead sheets. Discussions with regard to transport terms are ongoing, but the purchaser has rejected Broomhills initial proposal that FCA incoterms 2010 should apply to the contract. Advise Broomhill which alternative incoterms 2010 could be used as an appropriate commercial compromise between the parties. As Broomhill is negotiating with a new company from another country, it should bear in mind that a variety of possible problems may arise during the delivery and acceptance of goods. Thus, it is necessary for the company to choose transport terms that will give Broomhill more freedom and financial security. The purchaser in America did not agree to the terms of FCA incoterm®, but it is clear that the company should pursue options where the buyer has more responsibilities in order to ensure minimal losses. Moreover, the large size of the first shipment also raises the issue of the buyer being unable to meet the terms of the final contract. A number of incoterms® 2010 can be advised for the company to guarantee a deal with a low possibility of financial issues. Broomhill can propose to carry the transaction out on the terms of CPT (Carriage Paid to) incoterm®. Here, the obligations of a seller include paying for transportation to the chosen destination inside the seller’s country. Thus, Broomhill would agree to take on more financial responsibility and pay for the delivery from their facility to the port of import. This incoterm® varies from FCA in a way that still keeps the buyer the main acting side in all processes of delivery. Broomhill would only have to pay for the delivery to the port. Moreover, insurance for the goods is arranged by the buyer. As it is the first purchase by the American company, Broomhill should remain aware of the fact that it does not know the behaviour of the buyer. The transportation beyond the port should be paid by the American company. Another incoterm® that would place less responsibility on Broomhill is CIP – Carriage and Insurance Paid to (named place of destination). In this case, the seller’s expenses have to include all terms mentioned above and also add insurance for the delivery. This type of agreement is less economically advantageous for Broomhill as it has to cover transportation and insurance partially. As specified by the incoterm®, the insurance coverage’s amount should be equal to the value of the purchased goods plus 10%. Here, the purchase is large, which could place Broomhill in a challenging position if the American purchaser is not satisfied with the goods or fails to cover other expenses. However, this particular option could ensure the buyer that the company is looking for a long-lasting and reliable partnership. The same issues apply to the next possible incoterm® – DAT (Delivered at Terminal). Although Broomhill has to pay all delivery costs and arrange insurance conditions and transport the goods to a negotiated terminal, the buyer has to pay for insurance and all expenses that cover the road from the terminal to the buyer’s desired place of delivery. Here, the seller avoids the responsibility of obtaining nece