Whether you are a new importer, exporter, or simply need guidance with the changes in the 2020 Incoterms® rules, Pegasus is here to help. The wrong Incoterm can increase your risk and add unwanted costs to your supply chain. For instance, if your commercial invoice reflects ‘DDP named place’ instead of ‘DAP named place,’ you can be on the hook for tens of thousands of dollars in storage costs, importer of record (IOR) issues, customs clearance, and duties/taxes.
What are Incoterms®?
Incoterms® are the world’s essential terms of trade for the sale of goods. They define the responsibility between the buyer and seller of all transport and customs components of a shipment in advance.
The newest edition of the Incoterms® rules includes 7 key changes:
- Delivered at Terminal (DAT) changed name to Delivered at Place Unloaded (DPU)
- Insurance points are clarified in CIF and CIP Incoterms® rules
- Costs and cost structures are now clarified
- Security in relation to transport is now clearly detailed
- Provisions to allow for own transport rather than assuming third party transport
- FCA, FOB, and Bills of Lading
- Presentation and design are more user friendly
Not understanding and selecting the incorrect Incoterm can cut into your margins and in some cases, add risk to your global compliance. It is important to have a logistics partner that can guide you and explain your options.
Pegasus Logistics Group is a full-service logistics provider that offers international and domestic transportation, customs clearance, and warehousing/distribution services worldwide. Our International group includes dozens of industry experts that can guide you through this process and keep your risk to a minimum. To connect with a team member, email firstname.lastname@example.org or call 800-997-7226.