How to Use the Incoterms Correctly?

You might be wondering when or why to use the Incoterm in your shipping business. At this point, we will give you some tips and recommendations for the proper use of these Incoterms or these International Trade Terms.

Use the Incoterms in the Contract

You must have an international merchandise sales contract. And that contract must be very well negotiated in each of its clauses; the Incoterm is just one of them. You have to negotiate each of these clauses so that the operation is very well regulated, especially if you are both exporter and importer. As we have already mentioned several times, one wants certainty, that is, that the goods reach us well; and also, that our product manages to reach the client in the best way possible. Then you have to use the Incoterms in the contract.

Choose the Right Incoterm

Each Incoterm has its advantages and disadvantages; surely it will ask “Which is the most suitable for my operations?”

Many times, it happens, with the Chinese suppliers, that you leave the goods in the port of the Chinese themselves and you ask yourself “What will I do to import these goods?” If you do not have the capacity, say personnel, or not know the import documents and laws, then it is best to ask to send the goods to your warehouse or your office. So, you have to choose the right Incoterm.

If you are an exporter, it is convenient to export via International Shipping with all the included service, for something is charging that service. Then there is a certain advantage since it has the contacts, and also the client also benefits.

You only have to choose the Incoterm that suits your economic needs, for saving time, personnel, etc. so you can have a good performance when you sell or buy a product.

Clare Louise Author