{"id":398,"date":"2026-02-25T19:14:11","date_gmt":"2026-02-25T19:14:11","guid":{"rendered":"https:\/\/remar.mx\/en\/?p=398"},"modified":"2026-02-25T19:14:13","modified_gmt":"2026-02-25T19:14:13","slug":"how-to-choose-right-incoterm","status":"publish","type":"post","link":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/","title":{"rendered":"How to choose the right INCOTERM"},"content":{"rendered":"\n<p>INCOTERMS (International Commercial Terms) are rules published by the International Chamber of Commerce (ICC) that define the obligations of buyers and sellers in an international transaction.<\/p>\n\n\n\n<p>They determine, among other things:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Who pays for transportation<\/li>\n\n\n\n<li>Who arranges insurance<\/li>\n\n\n\n<li>The point at which risk transfers<\/li>\n\n\n\n<li>Who handles export and import customs clearance<\/li>\n<\/ul>\n\n\n\n<p>Whether in import or export operations, choosing the right INCOTERM is a strategic decision, as it defines who assumes the costs, risks, and responsibilities at each stage of international transportation.<\/p>\n\n\n\n<p><strong>In this blog, we help you make the best decision to avoid unexpected expenses, customs delays, or contractual disputes.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Types of INCOTERMS in Force (INCOTERMS 2020)<\/h2>\n\n\n\n<p>INCOTERMS are divided according to the level of responsibility assumed by the seller.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Group E \u2013 Departure<\/h3>\n\n\n\n<p><strong>EXW (Ex Works)<\/strong><br>The seller makes the goods available at their premises. The buyer assumes almost all costs and risks from origin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Group F \u2013 Main carriage not paid by the seller<\/h3>\n\n\n\n<p><strong>FCA (Free Carrier)<\/strong><br>The seller delivers the goods to the carrier designated by the buyer.<\/p>\n\n\n\n<p><strong>FAS (Free Alongside Ship)<\/strong><br>The goods are delivered alongside the vessel at the port of shipment.<\/p>\n\n\n\n<p><strong>FOB (Free On Board)<\/strong><br>The seller fulfills their obligation once the goods are loaded on board the vessel.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Group C \u2013 Main carriage paid by the seller<\/h3>\n\n\n\n<p><strong>CFR (Cost and Freight)<\/strong><br>The seller pays for transportation to the destination, but risk transfers at origin.<\/p>\n\n\n\n<p><strong>CIF (Cost, Insurance and Freight)<\/strong><br>Similar to CFR, but includes minimum insurance coverage.<\/p>\n\n\n\n<p><strong>CPT (Carriage Paid To)<\/strong><br>The seller pays transportation costs to the agreed destination.<\/p>\n\n\n\n<p><strong>CIP (Carriage and Insurance Paid To)<\/strong><br>Includes insurance coverage at a higher level than CIF.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Group D \u2013 Delivery at destination<\/h3>\n\n\n\n<p><strong>DAP (Delivered At Place)<\/strong><br>The seller delivers the goods at destination, without clearing them for import.<\/p>\n\n\n\n<p><strong>DPU (Delivered at Place Unloaded)<\/strong><br>The seller delivers and unloads the goods at the agreed location.<\/p>\n\n\n\n<p><strong>DDP (Delivered Duty Paid)<\/strong><br>The seller assumes all costs, including import duties and taxes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Factors for Choosing the Right INCOTERM<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Level of Experience in International Trade<\/h3>\n\n\n\n<p>If your company has logistics experience and strong supply chain control, you may assume greater responsibility (for example, under terms such as FOB or FCA).<\/p>\n\n\n\n<p>If you prefer to minimize risks and delegate most of the transportation, terms like DAP or DDP may be more suitable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Ability to Manage International Transportation<\/h3>\n\n\n\n<p>Do you have a reliable logistics operator?<br>Do you maintain control over shipping lines, airlines, or ground transportation?<\/p>\n\n\n\n<p>Working with an experienced freight forwarder allows you to maintain greater control over routes, transit times, and costs, which may make negotiating under FOB or FCA more convenient.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Type of Goods<\/h3>\n\n\n\n<p>Perishable goods, heavy machinery, or high-value cargo require specific analysis.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sensitive cargo may require greater control over insurance coverage.<\/li>\n\n\n\n<li>Oversized goods may involve strategic decisions regarding who arranges the main transportation.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">4. Cost and Margin Control<\/h3>\n\n\n\n<p>Some INCOTERMS include additional services within the sales price. While this can simplify operations, it may also increase costs if not negotiated properly.<\/p>\n\n\n\n<p>Evaluating the total landed cost (not just the product price) is essential to avoid surprises at destination.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Risk and Responsibility<\/h3>\n\n\n\n<p>One of the most common mistakes is failing to understand when risk transfers.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Under FOB, risk transfers once the goods are loaded on board the vessel.<\/li>\n\n\n\n<li>Under EXW, almost all risk is assumed by the buyer from origin.<\/li>\n\n\n\n<li>Under DDP, the seller assumes nearly all responsibility until final destination.<\/li>\n<\/ul>\n\n\n\n<p>Choosing an INCOTERM without fully understanding this point can lead to disputes and financial losses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Which INCOTERM Is Best?<\/h2>\n\n\n\n<p>There is no universally \u201cbetter\u201d INCOTERM. The right choice depends on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your operational experience<\/li>\n\n\n\n<li>Your logistics structure<\/li>\n\n\n\n<li>Your negotiation leverage<\/li>\n\n\n\n<li>The country of origin and destination<\/li>\n\n\n\n<li>Your company\u2019s financial strategy<\/li>\n<\/ul>\n\n\n\n<p>Proper logistics and customs advisory support helps you select the most suitable INCOTERM to reduce risk and maintain control over costs and transit times.<\/p>\n\n\n\n<p>Contact us, we are <a href=\"https:\/\/remar.mx\/en\/business-units\/customs-agency\/\">a customs agency<\/a> with over 25 years of experience in international trade.<\/p>\n\n\n\n<p>Follow us on <a href=\"https:\/\/www.facebook.com\/REMAR-International-307756309664122\/\">Facebook<\/a>, <a href=\"https:\/\/www.instagram.com\/remar_international\/\">Instagram<\/a>, <a href=\"https:\/\/x.com\/REMAR_Intl\">X<\/a> and <a href=\"https:\/\/www.linkedin.com\/company\/remar-international\/\">LinkedIn<\/a> for more insights and updates on global trade.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>INCOTERMS (International Commercial Terms) are rules published by the International Chamber of Commerce (ICC) that define the obligations of buyers and sellers in an international transaction. They determine, among other &#8230;<\/p>\n","protected":false},"author":3,"featured_media":399,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[],"class_list":["post-398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-customs-agency"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to choose the right INCOTERM | Remar International<\/title>\n<meta name=\"description\" content=\"In this blog, we help you make the best decision to avoid unexpected expenses, customs delays, or contractual disputes...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to choose the right INCOTERM | Remar International\" \/>\n<meta property=\"og:description\" content=\"In this blog, we help you make the best decision to avoid unexpected expenses, customs delays, or contractual disputes...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/\" \/>\n<meta property=\"og:site_name\" content=\"Remar International English\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-25T19:14:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-25T19:14:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/remar.mx\/en\/wp-content\/uploads\/sites\/2\/2026\/02\/remar-international-incoterms-agencia-aduanal-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1345\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Andy Monroy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andy Monroy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/\"},\"author\":{\"name\":\"Andy Monroy\",\"@id\":\"https:\/\/remar.mx\/en\/#\/schema\/person\/e7e5fdea55f8f6145641682ca253888c\"},\"headline\":\"How to choose the right INCOTERM\",\"datePublished\":\"2026-02-25T19:14:11+00:00\",\"dateModified\":\"2026-02-25T19:14:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/\"},\"wordCount\":674,\"publisher\":{\"@id\":\"https:\/\/remar.mx\/en\/#organization\"},\"articleSection\":[\"Blog\",\"Customs Agency\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/\",\"url\":\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/\",\"name\":\"How to choose the right INCOTERM | Remar International\",\"isPartOf\":{\"@id\":\"https:\/\/remar.mx\/en\/#website\"},\"datePublished\":\"2026-02-25T19:14:11+00:00\",\"dateModified\":\"2026-02-25T19:14:13+00:00\",\"description\":\"In this blog, we help you make the best decision to avoid unexpected expenses, customs delays, or contractual disputes...\",\"breadcrumb\":{\"@id\":\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Inicio\",\"item\":\"https:\/\/remar.mx\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to choose the right INCOTERM\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/remar.mx\/en\/#website\",\"url\":\"https:\/\/remar.mx\/en\/\",\"name\":\"Remar International English\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/remar.mx\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/remar.mx\/en\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/remar.mx\/en\/#organization\",\"name\":\"Remar International English\",\"url\":\"https:\/\/remar.mx\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/remar.mx\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/remar.mx\/en\/wp-content\/uploads\/sites\/2\/2024\/02\/cropped-logo.png\",\"contentUrl\":\"https:\/\/remar.mx\/en\/wp-content\/uploads\/sites\/2\/2024\/02\/cropped-logo.png\",\"width\":213,\"height\":120,\"caption\":\"Remar International English\"},\"image\":{\"@id\":\"https:\/\/remar.mx\/en\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/remar.mx\/en\/#\/schema\/person\/e7e5fdea55f8f6145641682ca253888c\",\"name\":\"Andy Monroy\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/remar.mx\/en\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ce97bae9960f5059539b9b73e5c19a4f71b3b52236dcd08c296b5b06723b3d41?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ce97bae9960f5059539b9b73e5c19a4f71b3b52236dcd08c296b5b06723b3d41?s=96&d=mm&r=g\",\"caption\":\"Andy Monroy\"},\"url\":\"https:\/\/remar.mx\/en\/blog\/author\/andy\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to choose the right INCOTERM | Remar International","description":"In this blog, we help you make the best decision to avoid unexpected expenses, customs delays, or contractual disputes...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/","og_locale":"en_US","og_type":"article","og_title":"How to choose the right INCOTERM | Remar International","og_description":"In this blog, we help you make the best decision to avoid unexpected expenses, customs delays, or contractual disputes...","og_url":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/","og_site_name":"Remar International English","article_published_time":"2026-02-25T19:14:11+00:00","article_modified_time":"2026-02-25T19:14:13+00:00","og_image":[{"width":2560,"height":1345,"url":"https:\/\/remar.mx\/en\/wp-content\/uploads\/sites\/2\/2026\/02\/remar-international-incoterms-agencia-aduanal-scaled.jpg","type":"image\/jpeg"}],"author":"Andy Monroy","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Andy Monroy","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/#article","isPartOf":{"@id":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/"},"author":{"name":"Andy Monroy","@id":"https:\/\/remar.mx\/en\/#\/schema\/person\/e7e5fdea55f8f6145641682ca253888c"},"headline":"How to choose the right INCOTERM","datePublished":"2026-02-25T19:14:11+00:00","dateModified":"2026-02-25T19:14:13+00:00","mainEntityOfPage":{"@id":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/"},"wordCount":674,"publisher":{"@id":"https:\/\/remar.mx\/en\/#organization"},"articleSection":["Blog","Customs Agency"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/","url":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/","name":"How to choose the right INCOTERM | Remar International","isPartOf":{"@id":"https:\/\/remar.mx\/en\/#website"},"datePublished":"2026-02-25T19:14:11+00:00","dateModified":"2026-02-25T19:14:13+00:00","description":"In this blog, we help you make the best decision to avoid unexpected expenses, customs delays, or contractual disputes...","breadcrumb":{"@id":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/remar.mx\/en\/blog\/how-to-choose-right-incoterm\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Inicio","item":"https:\/\/remar.mx\/en\/"},{"@type":"ListItem","position":2,"name":"How to choose the right INCOTERM"}]},{"@type":"WebSite","@id":"https:\/\/remar.mx\/en\/#website","url":"https:\/\/remar.mx\/en\/","name":"Remar International English","description":"","publisher":{"@id":"https:\/\/remar.mx\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/remar.mx\/en\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/remar.mx\/en\/#organization","name":"Remar International English","url":"https:\/\/remar.mx\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/remar.mx\/en\/#\/schema\/logo\/image\/","url":"https:\/\/remar.mx\/en\/wp-content\/uploads\/sites\/2\/2024\/02\/cropped-logo.png","contentUrl":"https:\/\/remar.mx\/en\/wp-content\/uploads\/sites\/2\/2024\/02\/cropped-logo.png","width":213,"height":120,"caption":"Remar International English"},"image":{"@id":"https:\/\/remar.mx\/en\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/remar.mx\/en\/#\/schema\/person\/e7e5fdea55f8f6145641682ca253888c","name":"Andy Monroy","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/remar.mx\/en\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ce97bae9960f5059539b9b73e5c19a4f71b3b52236dcd08c296b5b06723b3d41?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ce97bae9960f5059539b9b73e5c19a4f71b3b52236dcd08c296b5b06723b3d41?s=96&d=mm&r=g","caption":"Andy Monroy"},"url":"https:\/\/remar.mx\/en\/blog\/author\/andy\/"}]}},"_links":{"self":[{"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/posts\/398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/comments?post=398"}],"version-history":[{"count":1,"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/posts\/398\/revisions"}],"predecessor-version":[{"id":400,"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/posts\/398\/revisions\/400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/media\/399"}],"wp:attachment":[{"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/media?parent=398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/categories?post=398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/remar.mx\/en\/wp-json\/wp\/v2\/tags?post=398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}