Be clear about Incoterms

Incoterms (International Commercial Terms) are key rules in international trade because they define who does what, who pays what, and where the responsibility lies between buyer and seller. Before using them, it is important to be very clear about the following:

They regulate the exact point of delivery of the goods, the distribution of costs, the risk, and who is responsible for export and import.

Always indicate the version, for example, FOB – INCOTERMS 2020. The rules change over time and using the wrong version can cause serious problems.

Not all INCOTERMS are suitable for all types of transport:

EXW, FCA, CPT, CIP, DAP, DPU, DDP → multimodal.

FAS, FOB, CFR, CIF → maritime only.

The exact point must be specified. It is not enough to say ‘DAP Spain’.

It must be a specific place, for example: DAP – Buyer's warehouse, Madrid, INCOTERMS 2020.

Goods insurance Only CIF and CIP require the seller to take out insurance, and:

Be clear about who handles export clearance, import clearance and who pays customs duties and taxes.

You must choose the Incoterm that fits your actual logistics, better control your risks and avoid hidden costs.