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SHIPMENT JOURNEY

INCOTERMS 101: NAVIGATING INTERNATIONAL SOURCING

WHAT ARE INCOTERMS?

11 terms set by the International Chamber of Commerce for use in contracts, purchase orders and quotations for B2B sales and purchases of tangible goods.

WHY DO THEY EXIST?

Incoterms divide costs, risks and responsibilities between sellers and buyers. They guide parties in international trade contracts to fulfill tasks such as shipping or insurance. And, they reduce issues of misunderstanding between buyer and seller.

USING INCOTERMS IN CONTRACTS

When purchasing for your business from overseas or if selling internationally, strengthen your trade by the following:

  • Determine the Incoterm that best suits your business (tip: seek advice from a professional such as a freight forwarder, local foreign trade office, etc.). Once chosen, request the seller to quote based on these terms.

  • Be as specific as possible with the term by following the standard format: INCOTERM, Location seller must deliver to, INOCTERMS 2020 (example: CIF, Shanghai, Incoterms 2020).

  • Provide the Incoterm details to your logistics provider in order to ensure you are not misquoted or discharged for additional freight fees outside of your responsibility in the contract.

  • Remember as your business grows and changes, so can your terms of trade.

INCOTERMS 2020 CHART

MORE RESOURCES

01. FINDING YOUR SCHEDULE B NUMBER

Link: https://uscensus.prod.3ceonline.com/

02. FINDING YOUR HARMONIZED TARIFF SCHEDULE NUMBER

Link: https://hts.usitc.gov/?query=3d%20imaging%20

03. FINDING DAT NATIONAL VAN RATES

Link: https://www.dat.com/industry-trends/trendlines/van/national-rates

FIND YOUR FUTURE ADVANTAGE TODAY.

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Hong Kong Beer Company LimitedHong Kong
"Global Gateway Logistics is my go-to vendor for my Hospitality projects located throughout the States.  Caitlin and her team provide unmatched transparency into process, timelines, customs clearances, and are always ready with an outside-the-box solution my other vendors do not provide.  GGL leverages new technologies and systems to maximize available information and they are always available for troubleshooting and problem solving during the storage and installation process."
Roch CaptialGlenn Mills PA
"Working with the Gateway Global Logistics Team has been such a breath of fresh air. This team is high dedicated to customer service and finding the best shipping solutions possible. They don’t stop until all questions have answered and are always ready to help. I feel lucky to have this team handling our logistics."
Limetree HospitalityDenver CO
"Working with the Global Gateway Logistics team has brought our growing company to the next level in terms of knowledge, strategic thinking and problem solving around freight and general logistics. The last 15 months have been very challenging for all companies who import products into the US. GGL has been by our side at every step, always available and responsive to help us solve problems and always taking the time to educate us about future challenges. Through the use of a well developed process and tool selection, we are able to know at all times where our shipments are and predict the departure and arrivals of our products. We look forward to continued growth for both of our companies!"
BearabyNew York
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