What is an Incoterm?
Incoterms is an abbreviation of international commercial terms. Incoterms are an internationally recognised 3 letter trade terms that best describe the practical arrangements for the delivery of goods between a seller & buyer, outlining the obligations, costs & risks between the 2 parties.
As an exporter you need to be ensuring that shipping & delivering responsibilities are wrote down & clearly understood between your customer/s. A few points to take into consideration when deciding upon the best incoterm for yourself & a customer:
- Who handles & pay for insurance
- Who handles customs procedures
- Who pays any duties & taxes
Incoterms are there to make sure responsibilities such as the delivery, custom procedures & duties are clearly defined & agreed.
