Frequently Asked Questions
Selecting the right Incoterm for that specific market, since it determines who bears customs cost, risk, and administrative responsibility from the first shipment onward.
Duty and tax calculations are tied directly to the Incoterm used, so the choice affects total cost per unit, not just documentation.
It can work at low volume, but it becomes a liability once demand grows or that carrier's capacity tightens during peak periods.
Beyond potential penalties, it often means missing free trade agreement benefits that would have reduced or eliminated duty payments.
Enough to secure flexible fulfillment capacity in advance. Building or contracting that capacity reactively after a demand spike is already too late.