International market is quite lucrative these days and to transcend the international boundaries are much easier. There is needed to keep watch on global changing trends, proper country, its economy and political risk analysis. However one thing which also need bit of care is appropriate INCOTERMS (International Commercial Terms). Although it is finally decided mutually by exporters and importer/ or agent. However while submitting the quotation one must keep in mind the level of business operation, years in business and importing countries specifications.

Free on Board (FOB): well to start the business and first time transaction should be on FOB basis and separately mentioning the freight cost. This way importer will be able to define the total landing cost of product by each unit. There are chances that  well establish importer have their own nomination in terms of shipping line or local setup  of logistic to handle the shipment aspect. Hence this way you are transparent to Importers that you are not charging more in the name of freight. Also this mode is quite hassles free since exporter needs to hand over the material to Importer’s logistic partner and rest are taken care.

Cost and Freight (CNF) & Cost Insurance Freight (CIF): If you have well establish business with any importer, there is need to offer comprehensive service hence CIF – International Commercial Terms are best from dispatch of goods to shipment documents are under your nose. You don’t need to be after the life of  forwarded to collect the documents on time and send to importer to release the container. One must concentrate that in countries like Brazil, Argentina, Peru the prevailing INCOTERMS are CFR. However irrespective of this term one must not forget to take Insurance as safe backup.

Duty Delivery Paid (DDP): Here with these terms it is exporter who bears the most of the shipment expenses and delivers the goods at Importer door step, at final point destination. This includes the insurance, import customs clearance, and payment of customs duties and taxes at the Importers end.

Hence the careful and regulative selections of International commercial terms make the entire process of Shipment comfortable and hassle free.