TOMEI SHOJI

INCOTERMS
(International Commercial Terms)


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INCOTERMS(International Commercial Terms)
INCOTERMS are a set of standardized trade terms defined by the International Chamber of Commerce (ICC). They clearly delineate the division of responsibilities, costs, and risks between buyers and sellers in international transactions, covering aspects such as transport, insurance, and customs clearance. In vehicle import/export, INCOTERMS play a crucial role in minimizing misunderstandings and facilitating smoother trade by clarifying obligations. A proper understanding of these terms is essential for enhancing operational efficiency, optimizing cost management, and ensuring compliance throughout the shipping process.

FOB(Free On Board)
Under FOB terms, the seller is responsible for delivering and loading the vehicle onto the vessel at the port of shipment. Once loaded, all subsequent risks and costs—including sea freight and insurance—transfer to the buyer.
Common Use Case:This term is typically selected when the buyer wishes to manage and control the main carriage and insurance arrangements directly.

CIF(Cost, Insurance and Freight)
The seller covers the cost of the vehicle, sea freight, and insurance up to the port of destination. However, the risk transfers to the buyer once the vehicle is loaded onto the vessel at the port of shipment.
Common Use Case: Convenient when the buyer prefers the seller to arrange and pay for the main carriage and insurance.

C&F (Cost and Freight)
The seller is responsible for the cost of the vehicle and sea freight to the port of destination, but does not include insurance. The risk transfers to the buyer upon loading at the port of shipment.
Common Use Case: Often chosen when the buyer prefers to arrange their own insurance coverage.

Import Support Information
Please note that as an exporter based in Japan, we are unable to handle the physical import procedures within your country. To ensure a smooth import process, we strongly recommend consulting a licensed customs broker in your local market.

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