Incoterms is short for International Commercial Terms. Incoterms are published by the International Chamber of Commerce and they’re an internationally recognised set of rules designed to clarify the obligations of customers and suppliers in trading contracts with regard to transportation, loading, unloading, insurance, tax, and duties.
There are over ten different Incoterms but the main ones likely to be of relevance are:
Delivery at place (DAP)
This is a commonly used Incoterm for all forms of transport which places the maximum obligation on the supplier to deliver and insure the goods to a named place. The customer is responsible for unloading and paying all taxes and duties.
Delivery Duty Paid (DDP)
As with DAP, the obligation for transport falls on the supplier, but so does the payment of taxes and duties. The customer is still responsible for unloading.
Ex Works (EXW)
This Incoterm is used where the customer (or the customer’s agent) collects the goods. The customer is responsible for loading, transporting and insuring the goods, along with paying all taxes and duties.
We are working with our transport partners to facilitate the most suitable Incoterms for all of our customers.