Incoterms Explained – What They Are and Why They Matter

February 3, 2025 by
Incoterms Explained – What They Are and Why They Matter
Editorial Staff

What Are Incoterms?

Incoterms (International Commercial Terms) are standardized rules defining the responsibilities of buyers and sellers in international trade. They clarify who is responsible for shipping, insurance, customs duties, and delivery risks.

Key Incoterms You Need to Know

EXW (Ex Works) – The buyer takes full responsibility for transport from the seller’s location

FOB (Free On Board) – The seller delivers the goods to a shipping port, then the buyer takes over

CIF (Cost, Insurance, and Freight) – The seller covers shipping and insurance up to the destination port

DDP (Delivered Duty Paid) – The seller takes full responsibility, including import duties

Why Incoterms Are Important

Understanding Incoterms helps businesses:

Avoid legal disputes over shipping responsibilities

Reduce costs by choosing the best terms for their needs

Ensure smooth customs clearance and delivery

At Horecarte Export Solutions, we help companies choose the right Incoterms, optimize logistics, and stay compliant with trade regulations.


Want a ready-to-use Incoterms chart?

Navigating Incoterms can be complex, but having a clear, visual reference makes it easier. Download our comprehensive Incoterms 2024 table to keep all key responsibilities at your fingertips.

📌 Avoid costly mistakes and streamline your international trade operations.

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📩 Need expert advice? Contact us for a free consultation!


📩 Contact us for expert advice on international shipping and trade compliance!

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