International trade

International Trade

Maritime, Road, and Air

International trade requires detailed agreements between the buyer and seller regarding the responsibilities that take place in the shipment of goods. Incoterms simplify this process by defining roles in costs, risks, and obligations with the aim of facilitating agreements and avoiding conflicts. Below, you can check which points we can offer you for the obligations that correspond to you in hiring transportation for imports, exports, and crosstrade operations.

Export

We can provide service in any of the 7 points of a shipment. However, it is common for the exporter to contract the transportation until the arrival of the ship at the destination port. These would be the following points:

  • 01 Pre-carriage from the place of loading to the Port of loading.
  • 02Export Customs Clearance.
  • 03Origin Local Costs.
  • 04Freight (maritime transportation).

If required, we can also provide service in the following sections:

  • 01Destination Local Costs.
  • 02Import Customs Clearance.
  • 03On-carriage from Port of discharge to the place of delivery.

Import

  • 01Pre-carriage from the place of loading to the Port of loading.
  • 02Export Customs Clearance.
  • 03Origin Local Costs.
  • 04Freight (maritime transportation).
  • 05Destination Local Costs.
  • 06Import Customs Clearance.
  • 07On-carriage from Port of discharge to the place of delivery.

In the case of an EXW sale, as the buyer, you will need to contract all points of the shipment. If it is FOB, you only need to contract from point 4 onward, and if the conditions are CFR (or CIF), you only need to contract transportation from point 5 onward.

You can contract any of these points through us.

Crosstrade

Crosstrade operations are considered those shipments in which the service contractor is not located in either the country of origin or the country of destination of the goods. Thanks to our network of agents and collaborators, we can offer you service in any of the following sections, from and to the country you need:

  • 01Pre-carriage from the place of loading to the Port of loading.
  • 02Export Customs Clearance.
  • 03Origin Local Costs.
  • 04Freight (maritime transportation).
  • 05Destination Local Costs.
  • 06Import Customs Clearance.
  • 07On-carriage from Port of discharge to the place of delivery.

What should you consider in your first shipments?

In maritime transportation, there are basically 7 points:

The first 3 points (01, 02, and 03) take place in the country of origin. The last 3 points (05, 06, and 07) take place in the country of destination.

It is recommended that each party involved in the shipment (exporter and importer) contracts the points that take place in their respective country.

Therefore, the exporter should take care of points 01, 02, and 03, and the importer of points 05, 06, and 07.

Ocean freight can be contracted by either party (exporter or importer). Normally, it will be contracted by whoever takes the first point in the commercial relationship.

Regarding Incoterms, if the exporter takes care of the freight in addition to the 3 points that take place in their country, the sale will be made under CFR conditions (or CIF if they also contract transport insurance to the destination port). If, on the other hand, the importer takes care of the freight, the sale will be made under FOB conditions.

  • 01Pre-carriage from the place of loading to the Port of loading.
  • 02Export Customs Clearance.
  • 03Origin Local Costs.
  • 04Freight (maritime transportation).
  • 05Destination Local Costs.
  • 06Import Customs Clearance.
  • 07On-carriage from Port of discharge to the place of delivery.

Shipments of personal effects: When it comes to personal effects, the exporter and importer are usually the same person. However, it is recommended to make the shipment under CFR or CIF conditions. This way point 05 will be handled by a local agent, helping to avoid time delays due to the time zone difference. Therefore, the first 4 points would be contracted in the country of origin, and the rest in the country of destination.

Incoterms: Incoterms are used to determine who (exporter or importer) is responsible for contracting each of the 7 points of the shipment.

Below is a table with the most common ones, indicating which points each party should contract for each Incoterm:

INCOTERMS EXPORTER IMPORTER
EXW 1, 2, 3, 4, 5, 6, 7
CFR 1, 2, 3, 4 5, 6, 7
CIF 1, 2, 3, 4 5, 6, 7
FOB 1, 2, 3 4, 5, 6, 7
DPU 1, 2, 3, 4, 5 6, 7
DAP 1, 2, 3, 4, 5, 7 6
DDP 1, 2, 3, 4, 5, 6, 7