What are incoterms?
The delivery terms are part of the contractual agreements between seller and buyer. The parties are free to agree whatever they might consider as necessary in order to pursue their commercial interests. Incoterms define the responsibilities of the buyer and seller with respect to the packing, transportation, and insurance of goods. It helps exporters and importers avoid misunderstandings, by clearly defining each other's responsibilities in the delivery of goods.
Greater Manchester Chamber of Commerce has a list of incoterms that you can review and decide on the best one for you. Please find the list here: Incoterms 2020
Which Incoterms are now on CDS? The Incoterms available for the data element 4/1 of Customs declaration Service (CDS) are: CFR, CIF, CIP, CPT, DAP, DAT, DDP, EXW, FAS, FCA, FOB. Updated NOV 2022
There are mandatory fields that need to be filled in, on the declaration, in order to describe the incoterm better. These are the code of the country where the incoterm has been agreed and the city location. You will need to establish the city where the goods will be picked up or delivered. This information needs to be clear in the invoice.
A typical example is DAP (delivery at place), where you will add in the invoice example, DAP_ Manchester. It means that the goods will be delivered at the company premises in Manchester.
What is new on CDS? Incoterms 2000 codes DAF, DDU, DES and DEQ are no longer permitted on CDS declarations.
The following note has been added to the CDS import declaration completion instructions. Incoterms 2000 codes DAF, DDU, DES and DEQ are not permitted on CDS declarations, they have been removed from the completion instructions for DE 4/1 Delivery terms. Please find more here.
Source: www.gov.uk
How can we help?
Need to gain or refresh your knowledge on incoterms?
We are running an Incoterms training on 22nd November 2022, where you will learn; What are Incoterms? what are the benefits of using, Incoterms for both buyer and seller? explanation of the risk and responsibility and more. Please find out more about this course here
Other training Courses, take a look at our upcoming calendar here.
Advice and Support: For further advice on any of the above or support you require with exporting or importing, please email exportbritain@gmchamber.co.uk.