Planning guidance, not transaction approval
Trade, customs and carrier requirements vary by commodity, route and date. Check current official requirements and obtain transaction-specific confirmation before dispatching goods.
Incoterms are internationally recognised trade terms used in sales contracts to allocate specified delivery responsibilities, costs and risk between buyer and seller. They do not replace the sales contract, customs law or payment terms.
Why they matter to freight planning
A freight provider needs to understand where the seller’s responsibility stops and the buyer’s begins. For example, an EXW-style requirement creates a different collection scope from a shipment where the seller is responsible for delivering to a named port or place.
Do not use an Incoterm as shorthand for everything
The named place is critical and should be stated precisely. The parties should also understand who is responsible for export clearance, import clearance, duties, insurance where applicable and the physical handover point.
Match the term to the actual transport arrangement
Some terms are designed specifically for sea or inland-waterway transport while others can be used across modes. Businesses should select the term as part of the commercial contract, not simply because it appeared on a previous shipment.
Tell your freight provider the agreed term
When requesting a quotation, include the Incoterm and named place if known. If it has not been agreed, explain exactly which stages you want included in the freight rate.
Incoterms define parts of the buyer-seller delivery relationship. They do not, by themselves, tell a carrier everything required to move the cargo.
This article is general information only. Commercial parties should use the official ICC Incoterms rules and obtain appropriate professional advice where the allocation of risk or contractual responsibility is material.
Need help with a live shipment?
Send AIN Enterprise Ltd the origin, destination, commodity, weight, dimensions and ready date for a route-specific review.
Request a Quote