Responsibilities of buyers and sellers according to incoterms

In case you are wondering what are the responsibilities of buyers and sellers according to incoterms? Read carefully the following guide where we will talk about it.

Keep in mind that the information that we will show below is intended for high-end importers and exporters of merchandise, if what you are looking for is something retail, you can opt for options such as selling your products on Wish , perfect for retailers.

What is Incoterms?

Incoterms refers to the “International Commercial Terms” which could be translated as “International Trade Terms”. When we talk about Incoterms we refer to the rules imposed by the international chamber of commerce for various sales contracts.

These rules form the basis for most international sales and purchase contracts. In fact, they are usually present in many merchandise purchases, so anyone who imports or exports should be very aware of this set of rules.

It must be taken into account that this set of rules is constantly changing , adapting to new forms of trade. Anyway, if you want to know the basic principles established by Incoterms, read the following.

Keep in mind that this is very different from things like Walmart’s return policies, which respond to standards set by a single company. Instead, Incoterms seeks to be a globalized regulatory standard.

Responsibilities of buyers and sellers according to incoterms

Incoterms regulations are quite extensive, in any case, we have summarized this set of rules so that they are understood more precisely. Next, we present the Incoterms rules for both sellers and buyers. Similarly, it is worth reviewing the difference between a cargo consolidator (NVOCC) and a freight forwarder (Freight Forwarder) useful for importers and exporters of merchandise.

Responsibilities of the seller

  • Preparation of the merchandise: According to Incoterms it is established that the seller must prepare the merchandise as it is established in the contract. This entails protecting said merchandise by packaging it appropriately and always in relation to the type of transport chosen during the contract.
  • Adequate documents: Similarly, the seller must provide the appropriate documentation in relation to the merchandise. This includes the invoice, the list of what has been packed and any other documents the buyer has previously requested.
  • Notify delivery to the carrier or destination: In turn, everything related to the transport of the merchandise must be notified. This entails notifying the moment in which the merchandise has left the seller’s office. In turn, it must be indicated when the merchandise reaches its destination. In relation to this, the seller must provide the tracking number if present.
  • Establish the export parameters: If the purchase procedure involves the export of the product, said export must be included in the invoice or otherwise it is the seller’s obligation. All export parameters must be managed by the seller.

Buyer responsibilities

  • Pay the agreed price: of course, the buyer must pay the price agreed in advance. Only when the buyer makes the payment in an appropriate way is when all the management that continues will be continued. The seller is not obliged to take any steps if the buyer has not made the payment.
  • Receive the merchandise at the agreed place: the seller cannot change at the last minute the place where the merchandise will be received. If required elsewhere, you must receive it in the place previously established and the payment to the destination will be paid by the buyer. Also downloading it is the sole responsibility of the buyer.
  • Be responsible for the costs after delivery: as we pointed out before, all movements after the delivery of the goods (at the agreed place) must be canceled by the buyer. The seller’s responsibility ends when the product is delivered to the place established before.

As we pointed out, the above is for considerable exports and imports, if instead you are looking for an alternative for your business, Glovo Business may be a better alternative for small shipments.

 

by Abdullah Sam
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