Foreign Trade and Customs

It is the code that classifies goods and determines applicable duties, restrictions and permits. An incorrect classification can mean duties underpaid — with the resulting exposure — or overpaid, plus goods held at customs. It is one of the most frequent and most expensive errors.

They are international terms defining how far each party's responsibility extends in a sale: who pays freight, who bears the risk and when it transfers. Agreeing to the wrong INCOTERM can leave shipment risk with a party that never anticipated or insured it.

The importer retains responsibility for the information and documentation of the transaction, even where a customs broker is involved. That is why customs declarations should be reviewed rather than assuming all risk has been delegated.

Customs declarations, commercial invoices, transport documents, certificates of origin and everything supporting the declared value and classification. It must be kept for the periods set by regulation, since an audit may arrive years after the transaction.