Incoterms 2020 Explained
Who pays for transport, insurance, and customs under each International Commercial Term, from EXW through DDP, FOB, CIF, and more.
All Incoterms guides
Related Party Transactions and Customs Value: How Transfer Pricing Affects Duty
When an importer buys from a parent, subsidiary or sister company, customs will accept the invoice price only if the relationship did not influence it. Here is how that test works and why a tax-approved transfer price is not automatically a customs value.
South Africa Import Customs Explained: SARS, VAT and Permits
To import into South Africa you register with SARS as an importer, declare the goods on a SAD 500 customs declaration, and pay duty plus 15% VAT on a value uplifted by 10%. Some goods also need a permit from ITAC, NRCS or an agriculture authority before they clear.
Importing Into Nigeria: Form M, PAAR and Customs Clearance Explained
Importing into Nigeria involves two separate approvals: Form M, lodged through a bank before shipment, and a Customs declaration assessed through a PAAR. This guide explains what each does, which system carries them as of October 2026, and what to confirm before you ship.
Importing into Brazil: Siscomex, RADAR, the DUIMP and the Tax Stack Explained
Importing into Brazil means a RADAR registration, a declaration filed through the Portal Siscomex, possible approvals from other agencies and a stack of federal and state taxes. This guide explains each piece and what was changing as of October 2026.
Customs Bonds and Guarantees for Freight Forwarders: US, EU and UK
A forwarder is asked to back its promises with money from regulators, customs authorities, airlines and carriers. This guide separates a bond from a guarantee and from insurance, and sets out what the US, EU and UK actually require as of October 2026.
Shipping Used Machinery and Equipment Internationally: What to Prepare
Used machinery is not just cheaper cargo with the same paperwork. This guide covers the documents, import restrictions, cleaning, fluids and batteries, loading method and export checks to prepare before a second-hand machine leaves the yard.
FCA vs FOB for Containerised Cargo: Which Incoterm to Use
FOB assumes the seller puts the goods on the ship, but a container is usually handed to the carrier at a terminal long before loading. This guide explains why FCA fits containerised cargo better under Incoterms 2020 and how to choose between them.
Shipping Wine and Spirits Internationally: Excise, Permits and Handling
Wine, beer and spirits are regulated goods first and freight second. This guide explains the three layers every alcohol shipment has to clear: permits, excise and tax, and physical handling, with a checklist you can work through before booking.
Sanctions Compliance for Freight Forwarders: OFAC, OFSI and Red Flags
A freight forwarder can break sanctions law without shipping to a sanctioned country or using a listed name. This guide covers why forwarders are in scope, what to check beyond the consignee, the red flags regulators publish, real penalties, and what to do on a hit (as of October 2026).
EU Common Transit Explained: NCTS, T1 vs T2 and the MRN
Transit lets goods cross several countries under customs supervision with duty and VAT suspended. This guide explains T1 and T2, the MRN, the principal and the guarantee, and what happens if a movement is not discharged.
Section 232 Tariffs on Steel, Aluminum and Derivatives Explained
Section 232 duties on steel, aluminum and copper changed shape in April and June 2026: they now apply to the full customs value of covered goods, in tiers from 10% to 50%. This guide explains what is covered, how to check a product, and what the Supreme Court IEEPA ruling did and did not change.
Importer of Record Explained: Who It Is and How Non-Resident Importers Work
The importer of record is the party legally answerable to customs for an import, and it is often not the party people assume. This guide explains who qualifies, what the role carries, and how non-resident importers and third-party IOR services fit in.
Importing into Japan: NACCS, the Import Permit and Consumption Tax Explained
Japan clears imports through a declaration filed in NACCS, an examination, payment of duty and consumption tax, and then an import permit. This guide walks through each step, how the tax is built, and which agencies can sit alongside Customs.
Importing into Saudi Arabia: Customs, FASAH, SABER and Conformity Certificates Explained
Saudi imports are cleared by ZATCA through the FASAH platform, and many regulated products also need SASO conformity certificates issued through SABER before the goods ship. This guide explains who files what, what is charged and what to confirm with a broker.
UAE Import Customs Explained: Dubai, Mirsal 2, GCC Duty and VAT
Importing into Dubai means a customs business code, an electronic declaration, a 5% GCC duty on CIF value for most goods and 5% VAT at the border. This guide explains each step, the documents behind a declaration and where free zones change the picture.
Singapore Customs, TradeNet Permits and Import GST Explained
Singapore charges no customs duty on most goods, but almost every movement still needs a TradeNet permit and imports carry 9% GST. This guide explains who files the permit, how GST is worked out, which schemes defer it, and where transhipment and strategic goods fit.
Importing into Malaysia: The K1 Form, MyCIEDS, Permits and Sales Tax Explained
Importing commercial goods into Malaysia means a Customs Form No. 1 (K1) declaration filed in the Royal Malaysian Customs Department system, supporting documents uploaded to MyCIEDS, and sometimes a permit from another agency. This guide explains each step as of October 2026 and flags what to confirm with Customs.
Exporting Food to China: GACC Registration Under Decree 248 and Its Replacement, Decree 280
Every overseas factory that makes, processes or stores food for China must hold a GACC registration number. Decree 280 replaced Decree 248 on 1 June 2026: here is who registers, how, for how long, and what the customs entry needs.
India Import Customs Explained: IEC, Bill of Entry, ICEGATE and Duty
Every commercial import into India needs a DGFT Importer Exporter Code and a Bill of Entry filed on ICEGATE, usually before the vessel arrives. This guide explains the filing deadlines, how the duty is built up, and the BIS and FSSAI holds that stop cargo most often.
Customs Penalties and Prior Disclosure: How 19 USC 1592 Works
Section 1592 lets CBP penalise a false or incomplete import entry even when no duty was lost. A valid prior disclosure, made before you know of an investigation and paired with a tender of the lost duty, can cut the penalty to interest or to nothing.
Importing into Australia: Customs Declarations, the ICS and Biosecurity Explained
Australian import clearance runs on two tracks: the Australian Border Force clears the goods for duty and GST through the Integrated Cargo System, and the Department of Agriculture, Fisheries and Forestry clears them for biosecurity. Here is how both work, as of October 2026.
ECCN and EAR99 Explained: How US Export Control Classification Works
An Export Control Classification Number (ECCN) places an item on the US Commerce Control List and, with the destination, decides whether a licence is needed. Items not on the list are EAR99, which is a classification, not a free pass.
AEO and CTPAT Explained: What Trusted Trader Status Really Gets You
Authorised Economic Operator (AEO) status in the EU and UK and CTPAT in the US are voluntary trusted trader programmes that buy fewer checks and faster clearance, not lower duty. Here is how each one works, what it takes to get in and who should bother.
Importing into Canada After CARM: The CAD, RPP Security and Your Customs Broker
Since October 2024 every commercial import into Canada is accounted for in CARM, the CBSA system that replaced the B3 with the Commercial Accounting Declaration. This guide explains what the importer must set up, what the broker can and cannot do, and the deadlines that now apply.
Trade Policy and Customs Update for Shippers, October 2026
As of 6 October 2026, the US-China truce has a new date in a Treasury statement, but the Section 301 port fee suspension still ends on 9 November in the only legal instrument that governs it. This update separates what officials have published from what has only been reported.
Dangerous Goods Training and Certification for Freight Forwarders
Any forwarder staff member who prepares, accepts or signs for dangerous goods needs function-specific training, refreshed on a fixed cycle and backed by records. Here is what IATA, the IMDG Code and 49 CFR require, and an internal control that stops untrained acceptance.
Phytosanitary Certificates and Plant Import Permits Explained
A phytosanitary certificate is an official plant health document issued by the exporting country's national plant protection organization, and the importing country decides when it is needed. This guide covers who issues it, how US import permits fit in, how ePhyto works and what happens to cargo that fails inspection.
Mexican Pedimento, IMMEX and Customs Brokers Explained
The pedimento is the customs declaration behind every Mexican import or export, and IMMEX is the program that lets manufacturers import inputs without paying duty first. This guide explains both, who may file, what changed for 2026, and where the US entry takes over.
UK Import Customs Declarations: CDS, EORI and Postponed VAT Explained
To import goods into Great Britain you need a GB EORI number, a customs declaration made on the Customs Declaration Service (yourself or through an agent), and a plan for paying duty and import VAT. This guide covers each step and what has changed at the border, as of 6 October 2026.
ISF 10+2 (Importer Security Filing) Explained: Who Files, What and When
The Importer Security Filing, known as ISF or 10+2, is the advance data filing US Customs and Border Protection requires for ocean cargo bound for the United States. This guide covers who files, the ten importer elements, the deadline, bonds, penalties and a practical forwarder workflow.
FDA Prior Notice and FSVP: What Food Importers Must File Before US Customs
Food shipped to the United States needs more than a customs entry. FDA wants a Prior Notice filed in advance, a registered foreign manufacturer, and a named FSVP importer, and a gap in any of them can strand the cargo at the port.
The Harmonized System Revision Cycle Explained: Why HS 2027 Became HS 2028
There is no HS 2027. The World Customs Organization pushed its latest Harmonized System revision back a year, and the edition that actually takes effect, HS 2028, enters into force on 1 January 2028. Here is how the revision cycle really works, and what an importer or forwarder needs to check when it lands.
Country of Origin Marking Rules Explained: Marking vs Duty Origin
A product can be legally marked "Made in Vietnam" and still fail to qualify as Vietnamese under a free trade agreement at the very same time, because marking and duty preference are decided by two different legal tests. Here is what the marking rule actually requires, where it does not apply, and what it costs to get wrong.
Inward and Outward Processing Relief: EU and UK Duty Suspension Explained
Inward and Outward Processing Relief are EU and UK customs procedures that suspend or reduce duty before it is paid, not refund it afterwards. Here is what each actually requires, and why the paperwork burden is the part importers underestimate.
Assists, Royalties and Customs Value: What You Must Add to the Price Paid
First sale lowers the price you start from. This is the mirror-image problem: the assists, royalties, resale proceeds, packing costs and commissions the law requires you to add back on top, and when each one actually applies.
Binding Tariff Rulings Explained: EU BTI vs US CBP Rulings
A binding ruling locks in your tariff classification before you ship, but the EU and US run genuinely different systems, and both cover less than importers assume. Here is how BTI and CBP rulings actually work, what protection they give you, and what they never touch.
Section 321 De Minimis and Type 86 Entry: What Changed
The $800 Section 321 exemption is suspended worldwide and Entry Type 86 has not accepted a new filing since August 2025, and neither the Supreme Court IEEPA ruling nor the litigation that followed brought either one back. Here is what CBP actually requires for low-value shipments now, sourced to the Federal Register and CBP guidance.
CBP Is Voiding Importer of Record Numbers: What Importers and Brokers Should Check
Since 18 September 2026, US Customs and Border Protection has said it will void any importer of record number whose Form 5106 data is inaccurate or incomplete. Here is what the Federal Register notice actually says, what is still unreported, and what to check this week.
AES and EEI Explained: How US Export Filing Works
Most US exports need Electronic Export Information filed in the Automated Export System before the cargo moves. This guide covers who files, when, what goes on the bill of lading, and what a wrong filing costs.
ICS2 and the EU Entry Summary Declaration: What Shippers Must Supply
ICS2 is the EU system that collects safety and security data on every consignment before it arrives. As of September 2026 it covers air, sea, road and rail, and the data you give your forwarder decides whether cargo is stopped.
EUDR Explained: What the EU Deforestation Regulation Means for Freight
The EU Deforestation Regulation has been postponed twice, and as of September 2026 it applies from 30 December 2026. Here is who carries the legal duty, what a shipper needs ready, and where a freight forwarder fits.
UFLPA Detentions and the US Forced Labor Import Ban Explained
A UFLPA detention starts a 30-day clock, and the burden of proof sits with the importer. Here is how the forced labor ban works, what CBP asks for, and what shippers and forwarders should have ready before cargo is held.
TIR Carnet Explained: International Road Transit Under Seal
A TIR carnet and an ATA carnet get confused constantly, and the difference matters: one covers goods passing through customs territory under seal on their way to a final destination, the other covers goods that will leave again unchanged. Only one of them is meant for permanent imports.
Tariff-Rate Quotas Explained: TRQs and Your Duty Bill
A tariff-rate quota is not a quota in the sense most people mean. Nothing is barred from entering. What changes is the duty rate, and getting the timing wrong on a time-sensitive commodity can mean paying substantially more than you planned.
Pro Forma Invoice in International Trade Explained
A pro forma invoice looks like an invoice but is legally a quotation, and that distinction matters at three separate points: customs entry, a letter of credit, and getting paid. Here is what CBP actually requires when the real invoice is not ready yet, and where treating the two documents as interchangeable causes real delay.
First Sale for Export: Lowering Your Customs Valuation
When goods move factory to middleman to importer, US customs law lets you pay duty on the earlier, lower price instead of what you actually paid, if you can prove it. Here is how first sale for export actually works, what CBP demands as proof, and why Congress is trying to abolish it this year.
ATA Carnets and Temporary Imports Explained
An ATA carnet moves goods across a border temporarily without paying duty or posting a local deposit. The rules changed in 2026: digital carnets went live in 30 territories on 1 June, and Mexico now demands pre-registration. Here is what a carnet covers, what it costs, and when it is the wrong tool.
Customs Post-Entry Amendments: Fixing a Filing Mistake After the Fact
A wrong value, code, or quantity on a customs entry does not have to become a compliance problem, as long as it is corrected the right way and within the right window.
Free Trade Agreement Certificates of Origin: How to Actually Use Them
A certificate of origin under a free trade agreement only saves duty if the product actually qualifies under the agreement's specific rules of origin, not just because it was made in a member country.
Anti-Dumping and Countervailing Duties: What Importers Actually Pay
Anti-dumping and countervailing duties can add far more to a landed cost than the regular tariff line. Here is what triggers them, how the rates are set, and how to check before you commit to a supplier.
Marine Pollutants and UN Numbers: Getting Classification Right
Marine pollutant status is an extra label on top of whatever your cargo already is. Plenty of ordinary products qualify, including detergents and paints.
Marine Cargo Insurance Documents: Certificate, Policy, Open Cover
Which insurance document you hold decides whether a bank will pay you. UCP 600 rejects a cover note outright, and that surprises people at the worst moment.
Limited and Excepted Quantities: When Full DG Rules Do Not Apply
Small quantities in small inner packagings pose less risk, and the regulations recognise it. Two separate regimes exist and they are frequently confused.
Cargo Marking and Labelling: What Goes on the Outside
The outside of the box is a document. It routes the cargo, tells handlers how to treat it, and in some cases is a customs requirement in its own right.
GDP Pharma Shipping: What the Rules Actually Require
GDP is about documented control, not about how cold the box was. Most forwarders who say they are GDP compliant cannot produce what compliance actually requires.
The Dangerous Goods Declaration: How to Get It Right
Most dangerous goods declarations are refused for the order of words in the shipping name, not for anything about the cargo. Here is how to complete one properly.
ISPM 15: Wood Packaging Rules and Why Shipments Get Rejected
The pallet under your cargo is regulated cargo in its own right. Untreated wood gets shipments refused entry, and the piece that fails is usually not the pallet.
Getting Paid: Credit Control for Freight Forwarders
Forwarding lends money whether it means to or not. The strongest debt-recovery tools you have are already in your trading conditions, most forwarders have never read them properly, and in the UK they changed on 31 December 2025.
How to Start a Freight Forwarding Company in the US: Licences, Bonds and Insurance
There is no single freight forwarder licence in the United States. There are four regimes run by three agencies, and which apply to you depends on what you will actually do. What each requires, what it costs, and what really sinks new forwarders.
Air Cargo Security in 2026: ACAS, Screening and Known Consignor Status
Advance data and physical screening are two different regimes, and both changed in the last year. What ACAS requires now, what the EU expects, and six widely repeated claims that the primary sources contradict.
Customs Binding Rulings: How to Get Certainty Before You Ship
A ruling binds CBP to a position on your goods, but only your goods, only if your facts were right, and only until it is revoked.
Customs Valuation: How the Dutiable Value Is Actually Calculated
The six methods, the five additions to the invoice price, and the First Sale rule, which is still alive despite what a lot of guidance implies.
US Customs Bonds: Single Entry vs Continuous, and How the Amount Is Set
What a bond actually guarantees, the formula behind the number, and why paying high duties does not use it up.
Foreign Trade Zones vs Bonded Warehouses: When Deferring Duty Pays
Both defer duty. Only one allows manufacturing, only one protects you from a rate rise, and recent tariff actions closed the biggest FTZ benefit.
Duty Drawback: How to Reclaim Duty on Goods You Re-Export
Up to 99% of duty back on re-exported or destroyed goods: the deadline nearly every article gets wrong, and which tariffs actually qualify.
Restricted Party Screening: What Exporters and Forwarders Must Check
The lists, the free official tool, why EAR99 does not mean unrestricted, and the ownership rule that blocks companies whose names appear on no list at all.
Rules of Origin: How to Claim Preferential Duty Without Getting It Wrong
Origin is about where goods were made, not where they shipped from. The three tests that confer it, what USMCA and EU claims require, and why enforcement got serious.
Freight Emissions Reporting in 2026: What Shippers Actually Have to Do
GLEC, ISO 14083 and Scope 3 explained, plus the rules that changed in 2026, including the one that caps what you can demand from small carriers.
Letters of Credit: How Document Discrepancies Delay Your Payment
Banks pay against documents, not goods. The discrepancies that stop payment, and how the shipping paperwork causes most of them.
Bill of Lading Types Explained: Original, Seaway, Telex and Switch
Which bill of lading releases your cargo, which one controls payment, and the mix-up that leaves containers sitting at destination.
Port-to-Port, Door-to-Door or DDP: What Each Freight Service Level Includes
Five service levels, what each one covers, and the charges that sit outside every single one of them.
Do You Need a Customs Broker? Broker vs Forwarder vs Filing Yourself
Three ways to clear customs, what each costs in money and risk, and the cases where self-filing is reasonable, plus the liability that never transfers.
How to Import from China to the USA: The Small Business Playbook
From supplier terms to delivered cargo: registrations, classification, the documents, who files what, and the timeline to plan against for a first China import.
Import Duty from China to the USA: How to Calculate What You Will Pay
Duty from China is now several layers stacked on one entry. How the calculation works, where each rate comes from, and how to estimate before you commit to an order.
How to Find a Verified Freight Forwarder (Without Getting Burned)
"Verified" means nothing until you know who verified what. The six credentials worth checking, where to check each one yourself for free, and the references that actually reveal something.
US Tariffs in 2026 After the IEEPA Ruling: What Importers Actually Pay
The Supreme Court struck down IEEPA tariffs in February 2026 and the duties were rebuilt under other statutes within months. What applies now, and how refunds work.
EU De Minimis Removal 2026: The 3 Euro Flat Duty Explained
The EU ended its 150 euro duty exemption on 1 July 2026. What the transitional flat fee means for ecommerce sellers, 3PLs and anyone shipping parcels into Europe.
CBAM Definitive Period: The 2026 Importer Checklist
CBAM moved from reporting to paying on 1 January 2026. What authorised declarant status means, who is exempt under the 50-tonne rule, and what to do before February 2027.
Customs Audit Readiness: The Import Records You Must Keep
Duty rates rose, so audit activity followed. A practical guide to the records importers must retain, how long to keep them, and the four findings auditors raise most.
DDP vs DAP vs FOB: Understanding International Delivery Terms
DDP, DAP, and FOB are the three most commonly misunderstood Incoterms. Learn exactly what each one means, who pays what, and which is right for your trade.
Import Documentation Checklist: Everything You Need for a Smooth Customs Clearance
Missing or incorrect import documents are the top cause of customs delays. Use this checklist to make sure every shipment is documented correctly first time.
HS Codes Explained: How to Find the Right Code for Your Cargo
HS codes determine your import duty rate in every country. Getting them wrong is costly. Learn how the Harmonised System works and how to find the right code for your products.
Customs Clearance and Trade Compliance: The Complete Shipper's Guide
Master customs clearance, HS codes, incoterms, import documentation, and trade compliance, everything you need for smooth international shipments.
Incoterms FAQ
What is the most common Incoterm for ocean export?
FOB (Free on Board) is widely used for ocean exports: the seller delivers goods on board the vessel at the port of shipment and risk transfers once loaded. Buyers often prefer FOB when they want to control ocean freight and insurance.
When should I use DDP instead of DAP?
Use DDP when the seller arranges and pays import duties and taxes at destination. Use DAP when the buyer handles import clearance and duties: the seller delivers to an agreed place but does not pay destination customs charges.
Does CIF include insurance?
Yes. Under CIF (Cost, Insurance and Freight) the seller must procure minimum marine insurance for the buyer benefit while the goods are in transit. The buyer should verify coverage limits meet their cargo value and risk profile.
Can I use EXW for international shipments?
EXW places maximum obligation on the buyer, including export clearance from the seller country. Many sellers cannot or will not export under EXW; for international trade FCA, FOB, or CIF/CFR are usually more practical.
Which Incoterm should I use for containerised cargo?
Use FCA, CPT, or CIP rather than FOB, CFR, or CIF. The sea-only rules assume cargo is loaded across the ship's rail, but containers are handed over at a terminal days before loading, so under FOB the seller keeps risk during a period when they no longer control the goods. FCA is the correct equivalent of FOB for containers.
How many Incoterms are there in the 2020 edition?
There are 11 rules, in two families. Seven work for any transport mode: EXW, FCA, CPT, CIP, DAP, DPU, and DDP. Four apply only to sea and inland waterway transport: FAS, FOB, CFR, and CIF. DPU replaced and widened the previous DAT rule in the 2020 edition.
Do Incoterms decide who owns the goods?
No. Incoterms allocate cost, risk, and responsibility for customs formalities. They say nothing about when title or ownership transfers, nor about payment terms or what happens if the contract is breached. Those must be dealt with separately in the sale contract. Assuming an Incoterm transfers ownership is one of the most common and most expensive misunderstandings in international trade.
What is the difference between DAP and DPU?
Unloading. Under DPU the seller must unload the goods at the named destination; under DAP the buyer unloads. Everything else is the same, including that the buyer handles import clearance and pays duties under both. DPU is the only Incoterm that obliges the seller to unload, so only agree it where the seller can realistically arrange equipment at that location.