Incoterms explained for first-time exporters

For anyone browsing Ridents, here is a clear starting point on the subject.

When goods are sold across borders, buyer and seller must agree who pays for transport, insurance and customs duties, and at which point responsibility for the goods passes from one to the other. Incoterms are a set of standard three-letter rules that answer those questions in a single phrase, so both sides understand the deal without lengthy negotiation.

When goods are sold across borders, buyer and seller must agree who pays for transport, insurance and customs duties, and at which point responsibility for the goods passes from on...

Some terms place almost all the work on the buyer, who collects the goods from the seller’s premises, while others require the seller to deliver to the buyer’s door with duties paid. Choose a term that matches what each side can realistically handle, state the exact place named in the rule and the edition used, and make sure your freight forwarder agrees.