Terms of Trade, often referred to as Incoterms 2016, 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 11 Incoterms 2016 to choose from and each has a different effect on price and delivery. Selection of the correct Incoterms 2016 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 2016. Before selecting an Incoterm 2016, 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?