- Customs duties and import VAT are significant costs in cross-border transactions.
- Incoterms are predefined commercial terms for buying and selling goods internationally.
- They help define risk and responsibility between buyers and sellers.
- Incoterms cover loading, unloading, transport, import and export formalities, and insurance.
- Clear terms are necessary to manage costs and risks effectively.
- EXW means the buyer handles all responsibilities and risks.
- DDP means the seller handles all responsibilities and risks.
- EXW and DDP represent opposite ends of risk and responsibility division.
- Other Incoterms like FCA, CPT, and DAP accommodate different scenarios.
- Incoterms can interact complexly with customs and VAT legislation.
Source: essentiaglobalservices.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
