Importer Handbook
Incoterms decide who books freight, who clears customs and the exact point where goods stop being your supplier's problem.
Practical guidance on the parts of importing where small mistakes turn into held shipments, surprise duties or unpaid suppliers.
01
Each rule decides who books freight, who pays for insurance and where risk moves from seller to buyer. The handbook walks through the common rules with worked shipment examples, so you can match one to your lane and payment terms instead of copying whatever the supplier's invoice says.
Incoterms and risk transfer
02
A missing certificate of origin, a mismatched tariff code or a value that does not reconcile with the invoice can stall clearance and add storage charges. The handbook sets out what US customs expects on entry paperwork and how to check a supplier's document set before the container sails.
Import documentation and compliance
03
How you pay changes what protection you have if goods arrive late or wrong. The handbook compares open account, letters of credit and escrow-style arrangements by cost, paperwork and the point at which your money leaves your control, so you can pick terms that fit the size of the order and the supplier relationship.
Supplier payments and trade finance
Incoterms and Risk Transfer
The Incoterm on your purchase order decides who pays freight, who clears customs, and the exact point where a damaged shipment stops being the supplier's problem.
Four rules cover most import deals, and each one moves a different cost and risk onto you.
FOB, CIF, DAP and DDP each name a point where loss of the goods becomes your problem. Know that point before you book freight, because insurance and claims follow it.
Incoterms and risk transfer
Under DDP the seller clears customs and pays duty; under DAP you do. That single word changes your landed cost and who holds the customs bond.
Customs clearance and duties
The commercial invoice, packing list and bill of lading have to agree on description, quantity and terms. A mismatch stalls clearance and can hold up your payment.
Import documentation and complianceStart here
Incoterms decide where cost and risk move from supplier to buyer, and that single choice shapes your customs paperwork, freight invoice and final landed cost.
Read the Incoterms articlesFree reference
One page covering all 11 Incoterms, which party books freight and insurance under each, and where risk passes to the buyer.
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Importer Handbook