Incoterms (International Commercial Terms) define the responsibilities and liabilities of the buyer and seller in international trade transactions. The choice of Incoterms depends on your agreement with the supplier or buyer. Some commonly used Incoterms when shipping from China to Afghanistan include:
- EXW (Ex Works): The seller makes the goods available at their premises, and the buyer is responsible for all transportation and risks from that point onward.
- FOB (Free On Board): The seller is responsible for delivering the goods to the named port in China, and the buyer takes responsibility from there.
- CIF (Cost, Insurance, and Freight): The seller is responsible for delivering the goods to the named port in Afghanistan and covers the cost of insurance and freight.
- DAP (Delivered At Place): The seller is responsible for delivering the goods to the named place in Afghanistan, excluding unloading.
- DDP (Delivered Duty Paid): The seller is responsible for delivering the goods to the named place in Afghanistan, including all duties and taxes.
The choice of Incoterms should be negotiated and agreed upon between the buyer and seller to clarify each party’s obligations and responsibilities.
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