Incoterms allows for the consignee and consignor to make arrangements on method of transports and who covers what costs and liability to what part of the journey. This will become more noticeable after Brexit, please look carefully at the Incoterms before agreeing or you could be paying extra Duty charges.
EXW – Ex-works
Buyer pays for everything including export and import clearance and arranges transport from supplier’s premises, including T1 document.
FCA – Free Carrier
Seller arranges for the export clearance, buyer arranges everything else along with transport, including T1 document, import clearance and pays all VAT and duties.
DAP – Delivered at place
Seller pays for export clearance and transport, including T1 document to the delivery point. The buyer pays for all import clearance along with taxes and VAT required.
DDP – Delivered duty paid
Seller pays for everything such as export clearance, transport including T1 document to the delivery point, import clearance along with all taxes and VAT required.
Want to know what incoterm to use which deters who pays the customs costs check out this chart
