Wine and dine

“Incoterms” is short for International Commerce Terminology. It outlines the terms of sale between the buyer (your manufacturer or supplier) and the seller (you).

The typical terms for sea and air freight shipments will be one of two Incoterms: Ex Works (EXW) or Free on Board (FOB).

EXW – Ex Works In simple terms, you are responsible for arranging all transportation, international shipping, and customs from their factory to the final destination. Your supplier will not arrange for this and it will not be paid on your behalf by the supplier. The title for the goods is passed to the buyer once t...