{"id":4800,"date":"2020-11-18T15:07:30","date_gmt":"2020-11-18T14:07:30","guid":{"rendered":"https:\/\/www.nagel-group.com\/?p=4800"},"modified":"2020-11-18T15:07:45","modified_gmt":"2020-11-18T14:07:45","slug":"the-crux-about-incoterms-know-your-incoterms","status":"publish","type":"post","link":"https:\/\/www.nagel-group.com\/en\/2020\/11\/the-crux-about-incoterms-know-your-incoterms\/","title":{"rendered":"The crux about Incoterms – Know your Incoterms\u00ae"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n

The crux about Incoterms – Know your Incoterms\u00ae<\/h2>\n

 <\/p>\n

\u201cIncoterms\u201d or \u201cInternational Commerce Terms\u201d have formed an essential part of international trade since 1923. They are published under International law by the International Chamber of Commerce (ICC) in France and are updated regularly in conjunction with chamber members.<\/p>\n

Incoterms are a series of three-letter terms that are designed to clearly identify and allocate the risks, costs and tasks that are associated with international transport and delivery of goods between seller and buyer. The current version of the terms (2020 edition), contains eleven different trade terms used for different modes of transport. Today, companies who only complete intra-EU trade use a small number of the Incoterms, as they do not need to include Customs clearance or payment of import taxes into their pu<\/p>\n

When the UK leaves the EU (under any scenario) this will change. The Incoterms will become not only important and necessary for the transportation of the goods, but more importantly, for the Customs clearance of the goods via the Customs Declaration System (HMRC). The Incoterms will determine the accuracy of Import and Export Customs clearance transactions and therefore the correct valuations of the products which are the basis on which Duty and Taxes are calculated for it. The Incoterms will ultimately decide who is responsible for paying the taxes and duties that are applicable for the consignment. If the wrong Incoterm has been used, it will cause errors with HMRC \u2013 leading to payment of additional taxes as well as possible civil penalties.<\/p>\n

Today, most trade with the EU is completed under either EXW (Ex Works) or DAP (Delivered At Place) for all Import or Export movements alike, however a number of other terms could also be used.<\/p>\n

Further information about Incoterms can be obtained by contacting your local Chamber of Commerce or can be found by opening the link.<\/a><\/p>\n

When the transitional period expires at 23:00 hours GMT\/24:00 CET on 31 December 2020 and you are either an Exporter or Importer who is responsible for organising and paying the costs of the transport, Nagel Langdons Ltd recommends that you make it best practice to use only a limited number of Incoterms as specified below. We have split our information into Import and Export movements and have limited our advice to the ones which we recommend and the ones to avoid.[\/vc_column_text]

Importing from the EU into the UK - Vice Versa
<\/span><\/span><\/div><\/h3>

Nagel-Group Recommendation = FCA \u2013 Free Carrier Arrival (Named place of delivery)<\/h3>\n

\u201cFree Carrier (named place)\u201d<\/b> means that the seller delivers the goods to the buyer in one of two ways:<\/p>\n

1: when the named place is the seller\u2019s premises, the goods are delivered when they are loaded on the means of transport arranged by the buyer<\/p>\n

2: when the named place is another place, the goods are delivered<\/p>\n