Incoterms are terms used in international trade to define who is responsible for freight payment, place of delivery, insurance requirements, etc. Its characteristics are crucial for guiding the costs that transport operators must bear.
Correct use of Incoterms facilitates daily processes and negotiations by defining the responsibilities of both seller and buyer, thus simplifying communication problems in international business.
Know in today’s publication the main Incoterms used in International Trade, so that when choosing the most appropriate Incoterm in the transport of your goods does not have unpleasant surprises related to additional charges and unnecessary costs.
What are the most commonly used Incoterms?
• EXW (Ex Works)
The Seller’s involvement is limited to packing the goods for delivery and making them available at its premises. The Buyer shall take all steps and assume all costs and risks during shipment to the final destination.
• DAP (Delivered at Place)
It provides that the seller is responsible for the cargo until it is delivered to a place previously notified by the buyer. Once the goods arrive at the agreed location and leave the carrier’s vehicle, the risk passes entirely to the buyer. Therefore, the purchaser is responsible for completing customs procedures, including paying duties and fees at destination.
• DDP (Delivered Duty Paid)
From the point of origin to the final destination, specified by the Buyer, the Seller shall assume all responsibilities and risks of transport. In this sense, the Seller must take care of the customs formalities and the payment of any fees that may be involved, whether in the country of origin, when exporting, or in the country of destination, when importing.
• FOB (Free on Board)
The buyer shall be responsible for all risks and costs of transport of the goods once they are on board the vessel, including any loss and/or damage and their customs clearance on arrival. The seller is obliged to take the goods on board at the named port of shipment.
• CIF (Cost Insurance And Freight)
If the seller pays all transport costs, including insurance and freight value, to the port of destination. Delivery to the destination is also the responsibility of the seller.
Sources:
FazComex. (2023). Incoterms: Conheça tudo o que você precisa saber. Consultado a 02 de janeiro de 2024, em: https://www.fazcomex.com.br/incoterms/incoterms-tudo-o-que-voce-precisa-saber/
Linkmex. (2021). Incoterms: O que são e para que servem. Consultado a 02 de janeiro de 2024, em: https://www.linkmex.com.br/blog/incoterms/incoterms-o-que-sao-e-para-que-servem/
Santander. (n.d.). Analise os mercados: Incoterms. Consultado a 02 de janeiro de 2024, em: https://santandertrade.com/pt/portal/analise-os-mercados/incoterms
