- by what mode of transport the goods will be sent
- who is responsible for arranging freight
- who is responsible for paying the cost of freight
- who is responsible for insurance of the goods (whether deemed by the incoterm or not)
- who deals with the customs clearance on export and import
- who is responsible for payment of duties and taxes
- who is in control of the documentation to get the goods through customs
- how the goods need to be packaged and mark up for export and import
- how the security arrangements will work throughout the export/ import process.
Understanding the Incoterm is vital in any trade transaction as it will help clarify if the buyer is in control of the goods at the point the seller is expecting the buyer to make payment. If the buyer is not in control of the goods when the seller is expecting payment from the buyer, then using one of the payment instruments Aldermore offer will eliminate this from happening.
It is also extremely important that the Incoterm is clearly expressed through all the documents within the transaction, see Contracts and Payments
You can read more about each Incoterm here on the International Chambers of Commerce (ICC) website. To talk about your import plans just contact one of our expert team today.
The information on this page is correct as of 21 April 2015
This page is for information only. You should seek professional advice if you have any questions relating to the information on this page.