Incoterms are globally acceptable trading terms that facilitate international trade. Incoterms regulate the transfer of responsibilities and costs between the buyer and the seller when they agree on a sales transaction and the goods need to be transferred from country A to country B.
Each Incoterm specifies:
- the point in the international journey of the goods at which the risk is transferred from the seller to the buyer.
- the cost obligation of each party (i.e., who is responsible for transportation costs and who is responsible for import costs)
The main incoterms we use when shipping with the EU are:
- DAP (Delivered at Place) and
- DDP (Delivered Duties Paid)
The main incoterms we use when importing from outside the EU are:
- EXW (Ex-works): The supplier will prepare the goods for pickup at their production site, the rest is up to the buyer. Hive can arrange the pickup of your goods from your supplier's site and organize the overseas shipment (incl. the import process) until the shipment is delivered to Hive or the recipient’s address.
- FOB (Free on Board): The supplier will deliver and load the goods to a defined vessel. Hive can arrange the overseas shipment (incl. the import process) until the shipment is delivered to Hive or the recipient’s address.
- FCA (Free Carrier): The supplier will deliver the goods to a defined port or airport. Hive can arrange the loading for the respective mode of transport and the overseas shipment (incl. the import process) until the shipment is delivered to Hive or the recipient’s address.