INCOTERMS
Incoterms define who is responsible for shipping, costs, risk and customs during international trade.
Incoterms are international trade terms that explain the responsibilities of buyers and sellers when goods are sold and transported across markets.
They help both parties understand who is responsible for transport, insurance, customs clearance, costs and risk at each stage of the order.
AA Commodities may work with common trade terms such as EXW, FOB, CIF, CFR and DAP, depending on the product, supplier, destination and buyer requirements.
EXW means the buyer usually collects the goods from the seller’s warehouse or agreed location and takes responsibility for transport, export and import arrangements.
FOB means the seller usually delivers the goods onto the vessel at the agreed port, after which the buyer takes responsibility for shipping, insurance and destination costs.
CIF means the seller usually arranges cost, insurance and freight to the destination port, but the buyer remains responsible for import clearance and local charges.
DAP means the seller usually arranges delivery to an agreed destination, while the buyer is normally responsible for import duties, taxes and customs clearance.
Not always. Duties, taxes, clearance fees and local destination charges depend on the agreed Incoterm and the destination country’s import rules.
Yes, our team can discuss the available trade terms and help buyers understand which option may be suitable for their order and destination market.
Yes, the agreed Incoterm should always be confirmed before payment, shipping or collection so both parties understand their responsibilities clearly.