Incoterms®

 

 Incoterms® are 11 trade terms (latest 2020 edition) clarifying cost, risk and customs responsibilities in cross‑border contracts. 
  

 Terms like EXW, FOB, CIF, DAP and DDP allocate who pays freight, insurance and duties. Misuse triggers surprise costs, delayed clearance and double insurance. A holistic landed‑cost model weighs duties, cash flow and compliance exposure when selecting a term.

What are Incoterms common pitfalls?

 

 Mixing 2010/2020 terms, omitting named place and assuming title transfer is covered. 

How do Incoterms affect landed cost?

 

 EXW shifts export formalities to buyer; DDP imposes unpredictable destination duties on seller.  

Related terms

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