Before designing a freight internationally, it is necessary to clarify this basic question: at what point the risks and costs are transferred to the buyer ?
The buyer and the seller reduce the uncertainty to any international transaction, such as trade practices and differing interpretations from one country to another. Become more precise their respective responsibilities and obligations for delivery of goods and documents obligations of the seller. In this way, Incoterms 2010, although optional, are standardized and recognized clauses allowing avoid litigation clearly distributed between buyer and seller:
Also, Incoterms distinguish the issue of risk transfer and the transfer of property , the latter subject to the law governing the contract. Specifically, in a contract of international sale Incoterms will clarify the following:
- Locate the critical transfer of risk from seller to buyer in the process of shipping goods (risks of loss, damage, theft of goods) point, allowing who assumes these risks can take preventive measures, especially in terms of insurance;
- Indicate who -the seller or buyer-must close the contract of carriage;
- Partition between both parties logistical and administrative expenses in the different stages of the process;
- Specify who is in charge of packaging, marking of goods, handling operations, loading and unloading of goods, or loading or transfer of the contents of containers , as the inspection;
- Set the respective obligations for carrying out the formalities for export and / or import payment of import duties and taxes, as well as the provision of documents. There are 11 Incoterms 2010 accepted by the ICC (English original encoding three letters, ex .: FOB) more accurate localization, ex .: “FOB Le Havre”.
If you want more information on all Incoterms there, you can consult in our section of paperwork .