{"id":5219,"date":"2025-05-14T02:16:07","date_gmt":"2025-05-14T00:16:07","guid":{"rendered":"https:\/\/www.agenciaaduanal.net\/?p=5219"},"modified":"2025-05-14T02:16:07","modified_gmt":"2025-05-14T00:16:07","slug":"choosing-the-right-incoterms-to-import-and-export","status":"publish","type":"post","link":"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/","title":{"rendered":"Choosing the right Incoterms to import and export"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">International commerce is a complex field. There are many factors to remember from recent issues like <\/span><a href=\"https:\/\/azafra.mx\/ghost-shipments-a-hidden-threat-to-global-trade\/\"><b>ghost shipments<\/b><\/a><span style=\"font-weight: 400;\">, which can compromise the security of goods, to administrative challenges such as language barriers, business responsibilities, and differences in legal frameworks.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">These latter issues can cause delays, misunderstandings, and even legal conflicts if not properly managed. Fortunately, there are tools to help prevent such problems, for example, <\/span><b>Incoterms<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re unfamiliar with them, or if you do know them but can\u2019t decide which is the right choice, then our next article is for you.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Tabla de contenidos<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a839174e43c9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a839174e43c9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#What_are_Incoterms\" title=\"What are Incoterms?\u00a0\">What are Incoterms?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#Types_of_Incoterms_rules\" title=\"Types of Incoterms rules\u00a0\">Types of Incoterms rules\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#For_any_transport\" title=\"For any transport\u00a0\">For any transport\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#For_sea_and_inland_waterway_transport\" title=\"For sea and inland waterway transport\">For sea and inland waterway transport<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#Which_Incoterm_should_you_choose\" title=\"Which Incoterm should you choose?\">Which Incoterm should you choose?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#1-_What_type_of_goods_are_you_planning_to_ship\" title=\"1.- What type of goods are you planning to ship?\">1.- What type of goods are you planning to ship?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#2-_Is_this_an_import_or_an_export_operation\" title=\"2.- Is this an import or an export operation?\">2.- Is this an import or an export operation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#3-_What_is_your_budget\" title=\"3.- What is your budget?\u00a0\">3.- What is your budget?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#4-_How_much_do_you_trust_your_sellerbuyer\" title=\"4.- How much do you trust your seller\/buyer?\">4.- How much do you trust your seller\/buyer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/#5-_Are_there_specific_trade_laws_involved\" title=\"5.- Are there specific trade laws involved?\u00a0\">5.- Are there specific trade laws involved?\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_are_Incoterms\"><\/span><b>What are Incoterms?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Whether it\u2019s importation or exportation, both buyers and sellers must comply with a series of regulations and applications. This can take valuable time to navigate.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">That&#8217;s where <\/span><b>Incoterms (International Commercial Terms) <\/b><span style=\"font-weight: 400;\">come in handy, as they set a common framework that helps all parties understand their responsibilities and avoid confusion.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">How does this work? Well, <\/span><b>Incoterms are a set of standardized trade acronyms<\/b><span style=\"font-weight: 400;\"> that, with only three letters, define who is responsible for customs duties, transportation costs, who handles insurance, where the goods will be delivered, who is responsible if the goods are damaged, the type of transport involved, and other logistic activities.\u00a0<\/span><\/p>\n<figure id=\"attachment_5221\" aria-describedby=\"caption-attachment-5221\" style=\"width: 491px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-5221\" src=\"https:\/\/www.agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-to-import.jpg\" alt=\"\" width=\"501\" height=\"376\" srcset=\"https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-to-import.jpg 934w, https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-to-import-300x225.jpg 300w, https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-to-import-768x576.jpg 768w, https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-to-import-16x12.jpg 16w\" sizes=\"(max-width: 501px) 100vw, 501px\" \/><figcaption id=\"caption-attachment-5221\" class=\"wp-caption-text\">import and export to incoterms<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Incoterms_rules\"><\/span><b>Types of Incoterms rules\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As of today, there are <\/span><b>11 Incoterms<\/b><span style=\"font-weight: 400;\"> rules published by the <\/span><a href=\"https:\/\/iccwbo.org\/\" target=\"_blank\" rel=\"noopener\"><b>International Chambers of Commerce<\/b><\/a><span style=\"font-weight: 400;\"> (ICC), with the latest version released in 2020. We can divide them into two broad groups depending on the mode of transport involved:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"For_any_transport\"><\/span><b>For any transport\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These Incoterms can be used regardless of the mode of transport\u2014land, air, sea, or a combination:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>EXW<\/b><span style=\"font-weight: 400;\"> (Ex Works)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>FCA<\/b><span style=\"font-weight: 400;\"> (Free Carrier)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CPT<\/b><span style=\"font-weight: 400;\"> (Carriage Paid To)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CIP<\/b><span style=\"font-weight: 400;\"> (Carriage and Insurance Paid To)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>DAP<\/b><span style=\"font-weight: 400;\"> (Delivered at Place)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>DPU<\/b><span style=\"font-weight: 400;\"> (Delivered at Place Unloaded)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>DDP<\/b><span style=\"font-weight: 400;\"> (Delivered Duty Paid)<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"For_sea_and_inland_waterway_transport\"><\/span><b>For sea and inland waterway transport<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These are specifically designed for maritime trade, where goods are handed over at a port:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>FAS <\/b><span style=\"font-weight: 400;\">(Free Alongside Ship)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>FOB <\/b><span style=\"font-weight: 400;\">(Free On Board)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CFR <\/b><span style=\"font-weight: 400;\">(Cost and Freight)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>CIF <\/b><span style=\"font-weight: 400;\">(Cost, Insurance and Freight)<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Which_Incoterm_should_you_choose\"><\/span><b>Which Incoterm should you choose?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Now, using an Incoterm rule is not a legal requirement, but as your <\/span><a href=\"https:\/\/azafra.mx\/en\/customs-broker-services\/\"><b>Mexican custom broker<\/b><\/a><span style=\"font-weight: 400;\"> would advise you, it is highly recommended.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Having a <\/span><b>common language <\/b><span style=\"font-weight: 400;\">helps significantly reduce misunderstandings between parties. In the event of a dispute, it also makes it easier for authorities to interpret the terms of the agreement and determine responsibilities more objectively.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">So, which Incoterm should you choose? To guide your decision-making, consider the following questions:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-_What_type_of_goods_are_you_planning_to_ship\"><\/span><b>1.- What type of goods are you planning to ship?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Size, value, sensitivity, and packaging may all affect transport responsibilities. For instance, if you plan to ship high-value goods, regardless of the mode of transport, using <\/span><b>CIP (Carriage and Insurance Paid To) <\/b><span style=\"font-weight: 400;\">can be a smart choice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This Incoterm requires the seller to provide insurance coverage, ensuring that if anything happens during the journey, the buyer is financially protected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you plan to ship a small cargo with limited value, and you&#8217;re looking to minimize your responsibilities as a seller, you might consider using <\/span><b>EXW (Ex Works)<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this case, the buyer assumes responsibility for the entire shipping process\u2014from picking up the goods at the seller\u2019s premises to handling transport, insurance, and customs procedures.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-_Is_this_an_import_or_an_export_operation\"><\/span><b>2.- Is this an import or an export operation?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your role as buyer or seller will influence your obligations and, therefore, your decision on which Incoterms to use.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">For example, your <\/span><a href=\"https:\/\/azafra.mx\/en\/customs-brokers-in-manzanillo\/\"><b>custom brokers in Manzanillo<\/b><\/a><span style=\"font-weight: 400;\"> might suggest <\/span><b>FOB (Free On Board)<\/b><span style=\"font-weight: 400;\"> if you&#8217;re familiar with local export procedures but want the buyer to take responsibility once the goods are loaded onto the vessel.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-_What_is_your_budget\"><\/span><b>3.- What is your budget?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Consider how much control you&#8217;re comfortable with and how much risk you&#8217;re willing to assume. A lower budget might lead you to choose terms where the other party handles most of the responsibilities, but this can also mean giving up control over key parts of the logistics process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the most buyer-friendly options is <\/span><b>DDP (Delivered Duty Paid)<\/b><span style=\"font-weight: 400;\">. Under this rule, the seller takes care of export procedures, international shipping, import customs, duties, and final delivery to the buyer\u2019s location. The buyer simply waits to receive the goods, making DDP perfect for those who want a hassle-free experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, if you&#8217;re a seller looking to limit your responsibilities and shift logistics onto the buyer, <\/span><b>FCA (Free Carrier)<\/b><span style=\"font-weight: 400;\"> is your best option. The seller delivers the goods to the buyer\u2019s designated carrier, and from there, the buyer takes over.<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-5222 aligncenter\" src=\"https:\/\/www.agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms.jpg\" alt=\"What are Incoterms\" width=\"514\" height=\"343\" srcset=\"https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms.jpg 934w, https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-300x200.jpg 300w, https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-768x512.jpg 768w, https:\/\/agenciaaduanal.net\/wp-content\/uploads\/2025\/05\/Incoterms-18x12.jpg 18w\" sizes=\"(max-width: 514px) 100vw, 514px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-_How_much_do_you_trust_your_sellerbuyer\"><\/span><b>4.- How much do you trust your seller\/buyer?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Trust plays a crucial role in choosing the right Incoterms<\/b><span style=\"font-weight: 400;\">. Ask yourself whether you&#8217;re comfortable assigning a large portion of the responsibilities, such as shipping, insurance, or customs clearance, to your business partner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;re unsure about their reliability or experience, it may be safer to retain more control over the process. For instance, choosing Incoterms like<\/span><b> EXW (Ex Works) or FCA (Free Carrier) <\/b><span style=\"font-weight: 400;\">guarantee that you take more responsibility for transportation and customs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, if you have a trusted partner with proven logistics capabilities, choosing a term, such as<\/span><b> DDP (Delivered Duty Paid) <\/b><span style=\"font-weight: 400;\">or CIP <\/span><b>(Carriage and Insurance Paid To)<\/b><span style=\"font-weight: 400;\">, could save you time and effort.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-_Are_there_specific_trade_laws_involved\"><\/span><b>5.- Are there specific trade laws involved?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Local laws or trade agreements may favor certain Incoterms depending on the region or type of product. It&#8217;s essential to consider them, as they could affect the cost structure, customs procedures, and responsibilities for both parties.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s say, for example, that you&#8217;re shipping goods to or from countries within a trade agreement like the <\/span><b>USMCA<\/b><span style=\"font-weight: 400;\"> (United States-Mexico-Canada Agreement), <\/span><b>CPT<\/b><span style=\"font-weight: 400;\"> (Carriage Paid To), or <\/span><b>CIF<\/b><span style=\"font-weight: 400;\"> (Cost, Insurance, and Freight) may be more suitable due to favorable terms for freight and insurance coverage.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if you\u2019re dealing with a more complex trade route or higher-risk goods, you might want to consider Incoterms that grant you control over transportation and risk management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Trust your <\/span><b>Mexican customs broker <\/b><span style=\"font-weight: 400;\">to find the best solutions for your business needs. For more information on import and export procedures, feel free to check out our website and blog.<\/span><\/p>\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>International commerce is a complex field. There are many factors to remember from recent issues like ghost shipments, which can compromise the security of goods, to administrative challenges such as language barriers, business responsibilities, and differences in legal frameworks.\u00a0 &nbsp; These latter issues can cause delays, misunderstandings, and even legal conflicts if not properly managed. &#8230; <a title=\"Choosing the right Incoterms to import and export\" class=\"read-more\" href=\"https:\/\/agenciaaduanal.net\/en\/choosing-the-right-incoterms-to-import-and-export\/\" aria-label=\"More on Choosing the right Incoterms to import and export\">Read more<\/a><\/p>","protected":false},"author":2,"featured_media":5220,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[374,341,448],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Choosing the right Incoterms to import and export - 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