Incoterms & Customs: Know the Rules
- Arne Mielken
- Apr 8
- 4 min read
The right Incoterm can make or break your customs compliance strategy.
When working in Customs, Compliance, Import, or Export, understanding Incoterms isn't just helpful—it’s critical. These internationally recognised trade terms define the responsibilities of buyers and sellers in cross-border trade. They impact everything from freight costs and insurance obligations to Customs valuation, duty payment, and trade compliance across the EU, UK, and USA. Get them wrong, and you risk delays, audits—or worse, penalties.
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Key Questions Covered in This Blog
What are Incoterms, and why do they matter for Customs compliance?
How do Incoterms affect Customs valuation and duty calculation?
What are the four Incoterm groups, and what responsibilities do they assign?
What common mistakes do traders make when using Incoterms?
How can Customs professionals use Incoterms to ensure trade compliance?
"Incoterms define more than just who pays for shipping—they set the stage for your entire customs compliance journey."“Arne Mielken, Managing Director, Customs Manager”
Abbreviations Used In This Blog
EXW – Ex Works
FCA – Free Carrier
FOB – Free on Board
CFR – Cost and Freight
CIF – Cost, Insurance, Freight
DAP – Delivered at Place
DDP – Delivered Duty Paid
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What are Incoterms, and why do they matter for Customs compliance?
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