The Vital Role of Incoterms 2020

Incoterms are a set of 11 internationally recognized rules defining the responsibilities of sellers and buyers. They determine exactly who pays for transport, insurance, and duties, and critically, where the risk transfers from seller to buyer.

"Choosing FOB versus DDP can dramatically change your total landed cost and liability. We ensure your choice aligns with your financial and operational goals."

Diagram showing risk transfer points in international logistics

EXW (Ex Works)

Maximum responsibility on the buyer. The seller makes the goods available at their premises.

FOB (Free On Board)

The seller delivers goods on board the vessel nominated by the buyer. Risk transfers once loaded.

DDP (Delivered Duty Paid)

Maximum responsibility on the seller. The seller delivers goods to the buyer, cleared for import.

Specialized Compliance & Forwarding

Technical expertise to mitigate risks and streamline global transit.

Incoterms Consultation

Selecting the optimal term to balance cost control with risk management for every individual lane.

Documentation Review

Rigorous auditing of Commercial Invoices and Packing Lists to prevent customs hold-ups.

Transshipment Management

Precision coordination of cargo transfers between vessels and ground transport in international ports.

Customs Liaison

Acting as your advocate with customs brokers to facilitate rapid clearance and regulatory adherence.

Avoid Costly Errors

Are you sure your last international shipment used the right Incoterm? A small mistake can cost thousands.

Freight stuck at a terminal due to documentation error

Incorrect HS Code Classification

Misclassifying products leads to incorrect duty payments, retroactive tariffs, and significant financial penalties.

Using Outdated 2010 Incoterms

The 2020 revision introduced critical changes regarding insurance and security. Using old terms leaves you legally exposed.

Incomplete Commercial Invoices

Missing weight data, currency specifications, or seller details is the #1 cause of port-side customs delays.

How Aroura Protects You

Our meticulous pre-shipment review process audits every document and classification before your cargo ever leaves the dock.

Unsure About Your Trade Compliance?

Identify risks in your current shipping process. Schedule a professional 15-minute consultation with our international logistics specialists to ensure your documentation and terms are airtight.

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