INCOTERMS 2020

How to deal business and international logistics?

Negotiating at international level brings with it obligations and responsibilities for each of the parties, Exporter / Seller, Importer / Buyer.

The INCOTERM is a way to regulate international negotiations detailing who is responsible for which part of the logistics process, different from who assumes the costs of the operation, since it is always the Importer / Buyer who assumes the logistics costs of moving the cargo from origin to destination, as the Exporter / Seller as it assumes different responsibilities in the operation must add that service or process in the invoice.

The INCOTERMS for any mode of transportation by land, air, rail or sea are: EXW, FCA, CPT, CIP, DPU, DAP and DDP.

INCOTERMS for sea transport are: FAS, FOB, CFR, CIF

We CLM Cargo as your foreign trade advisor recommend you:

If you are an exporter: many times your customer wants to market your product but does not know how to transport it, then for you to offer a service DOOR TO DOOR, can help you close the deal, from a complete offer your customer can decide to do the whole service with you through us or do a part with you and another part with your trusted agent, or if it is an importer with experience and has all the contacts you will buy EXW (Put in Factory) and you must provide the documents and cargo to be able to make your foreign trade operation.

If you are an importer: we recommend you to quote with your supplier the price EXW (ex-factory) and FOB (FOB at origin) or FCA (FOB at origin), with this data we compare what your supplier offers you and what we CLM Cargo through our agents can offer you, and between these two proposals choose the best one for you.

In addition to choosing the INCOTERM, it is important that you make a contract with your supplier where you specify dates, quantities, responsibilities and obligations on the cargo, what happens in case of non-compliance, guarantees, returns, etc.

Information of interest: