登录查看更多内容

You’re about to ship a product internationally. What are the most important things to know about Incoterms?

由人工智能和领英社区提供技术支持

If you’re involved in international trade, you need to understand Incoterms. These are the standardized rules that define the responsibilities and risks of buyers and sellers in cross-border transactions. Incoterms cover aspects such as who pays for transportation, insurance, customs clearance, and taxes. Knowing how to use them correctly can save you time, money, and legal disputes. Here are the most important things to know about Incoterms before you ship a product internationally.

此文章中的业界达人

由社区从 3 条内容中精选。了解更多

Marco Menti, CHB, IAP

Senior Vice President, Internal Audit & Compliance at Jas Worldwide Management, Inc.

1 What are the different types of Incoterms?

There are 11 Incoterms in use, divided into two categories: rules for any mode of transport and rules for sea and inland waterway transport. The first category includes EXW (Ex Works), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAP (Delivered at Place), DPU (Delivered at Place Unloaded), and DDP (Delivered Duty Paid). The second category includes FAS (Free Alongside Ship), FOB (Free on Board), CFR (Cost and Freight), and CIF (Cost, Insurance, and Freight). Each Incoterm specifies the point at which the delivery, risk, and cost are transferred from the seller to the buyer.

添加您的观点

Marco Menti, CHB, IAP

Senior Vice President, Internal Audit & Compliance at Jas Worldwide Management, Inc.
举报内容
It would also be interesting to add that a big difference among the incoterms are the ones which include freight prepaid (starting by “C” and “D”) and the ones requiring freight collect (starting with letter “E” or “F”).

已翻译

赞

2 How to choose the right Incoterm for your shipment?

The choice of Incoterm depends on several factors, such as the type of product, the mode of transport, the destination country, the payment method, and the level of control you want to have over the shipment. Generally, the more obligations and costs you take on as a seller, the higher the price you can charge, but also the higher the risk you bear. Conversely, the more obligations and costs you pass on to the buyer, the lower the price you can charge, but also the lower the risk you bear. You should also consider the customs regulations and trade agreements of the countries involved, as some Incoterms may not be suitable or acceptable for certain transactions.

添加您的观点

Marco Menti, CHB, IAP

Senior Vice President, Internal Audit & Compliance at Jas Worldwide Management, Inc.
举报内容
A big difference can play the country where cargo is shipped. Depending on local practice, shippers might choose to retain control. Some countries also have been historically controlled by the importer as their cost will always be lower when negotiated locally.

已翻译

赞

3 How to communicate the Incoterm to your buyer or seller?

Once you have agreed on the Incoterm with your buyer or seller, you need to communicate it clearly and accurately in your sales contract and commercial invoice. You should always use the official abbreviation of the Incoterm, followed by the place of delivery. For example, FOB Shanghai means that the seller delivers the goods on board the ship at the port of Shanghai and the buyer pays for the freight and insurance from there. You should also specify any additional terms or conditions that may affect the shipment, such as the currency, the payment method, the delivery date, and the quality standards.

添加您的观点

Marco Menti, CHB, IAP

Senior Vice President, Internal Audit & Compliance at Jas Worldwide Management, Inc.
举报内容
It is also good practice to create shipment instructions for the forwarder so that there are no misunderstandings. I would insure that goods descriptions is clear and in English to facilitate customs clearance.

已翻译

赞

4 How to comply with the Incoterm requirements?

As a buyer or seller, you have certain obligations and rights under the Incoterm you have chosen. You should familiarize yourself with the details of each Incoterm and make sure you comply with them. For example, if you are a seller under EXW, you are only responsible for making the goods available at your premises and providing the necessary documents. The buyer has to arrange and pay for everything else, including transportation, insurance, customs clearance, and taxes. If you are a buyer under DDP, you are only responsible for accepting the goods at the agreed place and paying the agreed price. The seller has to arrange and pay for everything else, including transportation, insurance, customs clearance, and taxes.

添加您的观点

5 How to resolve disputes or claims related to Incoterms?

Despite your best efforts, sometimes things can go wrong with your shipment. You may encounter delays, damages, losses, or errors that affect the delivery, cost, or quality of the goods. In such cases, you need to know how to resolve disputes or claims related to Incoterms. The first step is to check the sales contract and the commercial invoice to see what the Incoterm states and what the evidence shows. The second step is to contact the other party and try to negotiate a fair and reasonable solution. The third step is to seek legal advice or arbitration if the negotiation fails or the dispute is complex.

添加您的观点

6 How to keep up with the changes in Incoterms?

Incoterms are not static. They are updated periodically by the International Chamber of Commerce (ICC) to reflect the changes in international trade practices and regulations. The latest version of Incoterms is Incoterms 2020, which came into effect on January 1, 2020. It introduced some changes and clarifications to the previous version, such as renaming DAT (Delivered at Terminal) to DPU (Delivered at Place Unloaded), adding security-related requirements, and providing more guidance on the allocation of costs. You should always use the most current version of Incoterms and check the ICC website for any updates or revisions.

添加您的观点

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Import/Export Operations

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

You’re about to ship a product internationally. What are the most important things to know about Incoterms?

1

2

3

4

5

6

7

1 What are the different types of Incoterms?

2 How to choose the right Incoterm for your shipment?

3 How to communicate the Incoterm to your buyer or seller?

4 How to comply with the Incoterm requirements?

5 How to resolve disputes or claims related to Incoterms?

6 How to keep up with the changes in Incoterms?

7 Here’s what else to consider

Import/Export Operations

给文章评分

感谢您的反馈

更多Import/Export Operations相关文章

更多相关阅读内容

You’re about to ship a product internationally. What are the most important things to know about Incoterms?

1

2

3

4

5

6

7

1 What are the different types of Incoterms?

2 How to choose the right Incoterm for your shipment?

3 How to communicate the Incoterm to your buyer or seller?

4 How to comply with the Incoterm requirements?

5 How to resolve disputes or claims related to Incoterms?

6 How to keep up with the changes in Incoterms?

7 Here’s what else to consider

Import/Export Operations

给文章评分

感谢您的反馈

查看其他技能