When you’re exporting goods internationally, clear communication is everything. That’s where Incoterms come in. Short for “International Commercial Terms,” Incoterms are globally recognised trade rules published by the International Chamber of Commerce (ICC). They define the responsibilities of buyers and sellers in international transactions, particularly around the delivery of goods.

Why Incoterms Matter

Incoterms play a crucial role in international trade by outlining:

• Who is responsible for transporting goods
• Who handles insurance and customs clearance
• Where the transfer of risk occurs between buyer and seller

This clarity helps both parties avoid misunderstandings, reduce legal disputes, and manage costs more effectively.

Commonly Used Incoterms

Here are a few examples exporters often encounter:

• EXW (Ex Works): The buyer is responsible for the entire journey from the seller’s premises.
• FOB (Free On Board): The seller is responsible up to the goods being loaded onto the shipping vessel.
• CIF (Cost, Insurance & Freight): The seller pays for the cost, insurance, and freight to the destination port.
• DAP (Delivered at Place): The seller handles all costs and risks up to delivery at the buyer’s location, excluding import duties.

Each term comes with pros and cons depending on your shipping strategy, risk tolerance, and customer expectations.

Choosing the Right Incoterm

Selecting the correct Incoterm is essential to:

• Protect your profit margins
• Ensure smoother customs clearance
• Define your level of liability
• Provide better service to your buyers

Many growing eCommerce businesses and exporters overlook the importance of Incoterms until they face delays or unexpected costs. That’s why it pays to get expert advice before you ship.

How Crossborder Logistics Can Help

At Crossborder Logistics, we support exporters with clear, practical guidance on the most appropriate Incoterms for their specific shipments and destinations. We help you:

• Navigate compliance and documentation
• Minimise risks and delays
• Reduce overall shipping costs

Whether you’re sending goods via air, sea, or road, our team ensures you’re protected every step of the way.

Need help choosing the right Incoterm for your next shipment?
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