Background
Terms of Trade, often referred to as
Incoterms 2000, define a broad range
of cost and shipping obligations, including
the manner in which a product is packed,
inland transportation costs on the seller’s side, export clearance,
international transport costs, insurance,
and inland transport costs on the buyer’s
side, etc. These obligations and costs
need to be built into any international
transaction. There are 13 Incoterms 2000
to choose from and each has a different
effect on price and delivery. Selection
of the correct Incoterms 2000 has a huge
impact on the risk and profitability
of international trade. In fact,
it’s virtually impossible
to make an international sale until one's
been chosen.
How can we help?
We can advise you of your options and
recommend the most suitable Incoterm
2000. Before selecting an Incoterm 2000,
we would address several key questions.
- Which transport modes are to be used?
- Who will nominate the carrier?
- How much of the responsibility and risk are you prepared to bear?
- What is your pricing policy?
- What are your customer requirements?
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