VOICE-OVER: The Netherlands is a real trading nation.
Day and night, planes, trains, trucks, and ships...
transport goods all across the globe.
A lot can go wrong in these flows of goods...
and misunderstandings can arise between buyer and seller.
Whether you are a seller or a buyer...
it’s essential to make clear agreements on the distribution of costs...
risks, shipping, and customs documentation.
And on who takes care of transport and insurance.
The Incoterms of the International Chamber of Commerce provide clarity.
They consist of eleven different terms which include obligations for buyer and seller.
Incoterms CFR, FOB, FAS, and CIF focus on maritime transport.
The remaining seven focus on any other form of transport.
The place where goods are transferred between buyer and seller...
is important for Incoterms.
It affects the costs, risks, and obligations for each party.
This physical place could be a dock, transport vehicle...
warehouse, or even a border.
An example:
A factory in Colombia offers a quotation containing Incoterm FCA.
This means that the seller organises transport, insurance...
and unloading of the goods in the port of Cartagena.
The seller also files an export declaration with customs in Colombia...
and takes care of all export documents.
The buyer arranges a ship and transport to the Netherlands...
files an import declaration, pays import duties and VAT...
and arranges transport from the port of Rotterdam to their location.
Incoterms on your import or export quotation...
define what your rights and obligations are...
as a buyer or a seller.
Want to learn more?
Read the explanation of each Incoterm on kvk.nl/english.