1. Choose the Right Incoterm Based on Your Needs

• Analyze Responsibilities: Select an Incoterm that aligns with your ability to handle costs, risks, and obligations. For example:
  • EXW or FOB: If you have strong control over logistics and customs processes.
  • CIF or DDP: If you want the seller to manage shipping, insurance, or import duties.
• Consider the Transport Mode: Some Incoterms, like FOB, CIF, and FAS, are specific to sea and inland waterway transport. Others, like FCA and DAP, work for any mode of transport.

2. Clarify Incoterm Details in Your Contract

• Specify the Place of Delivery: Always include precise locations in contracts to avoid confusion. For example:
  • FCA, Port of Rotterdam specifies the exact point where the seller hands over goods.
• Understand Risk Transfer Points: Clearly document when the risk transfers from seller to buyer to prevent disputes.
• Avoid Assumptions: Verify with all parties (e.g., freight forwarders) to ensure the chosen Incoterm suits the logistics plan.

3. Stay Updated and Educate Your Team

• Use the Latest Version: The 2020 Incoterms are the most current. Ensure all parties in your supply chain are aligned with these updates.
• Train Stakeholders: Educate your team on the implications of each Incoterm, especially those handling customs, insurance, and logistics.
• Seek Expert Advice: If unsure, consult freight forwarders or legal advisors to mitigate risks and ensure compliance.

By carefully selecting the Incoterm, documenting all details, and staying informed, you can reduce risks and ensure smooth international transactions.