Navigating Incoterms: Key C-Terms for UK Importers Post-Brexit

The C group of Incoterms® Rules is particularly suitable for UK imports from EU countries. These terms place the bulk of the risk and responsibility on the seller, which can be beneficial for UK buyers.

Under the C group of Incoterms®, the seller is responsible for arranging and paying for the carriage of the goods to the named port of destination. This includes the cost of loading the goods onto the carrier and unloading them at the destination port. The buyer is responsible for clearing the goods through customs at the destination port and paying any import duties or taxes.

The C group of Incoterms® is a good option for UK buyers who want to avoid the hassle of arranging and paying for the carriage of goods. It is also a good option for buyers who are not familiar with the customs procedures in the destination country.

The following are the C group of Incoterms® Rules:

• CFR (cost and freight)
• CIF (cost, insurance and freight)
• CPT (carriage paid to)
• CIP (carriage and insurance paid to)

The most suitable C term for UK imports from EU countries will depend on the specific circumstances of the transaction. However, CFR and CIF are generally the most popular options.

CFR stands for

"cost and freight"

Under CFR, the seller is responsible for arranging and paying for the carriage of the goods to the named port of destination. The seller also bears the risk of loss or damage to the goods until they are on board the ship.

CIF stands for

"cost, insurance and freight".

Under CIF, the seller is responsible for

arranging and paying for the carriage of the goods to the named port of destination.

The seller also bears the risk of loss or damage to the goods until they are on board the ship.

In addition, the seller is responsible for arranging and paying for the cost of insurance against loss or damage to the goods during carriage.

Both CFR and CIF are good options for UK imports from EU countries. However, CIF is generally the more expensive option, as it includes the cost of insurance.

Also, C term under the Incoterms that is particularly suitable for UK imports from EU countries is CPT (Carriage Paid To).

CPT requires the seller to deliver the goods to a carrier nominated by the seller, and the seller must pay the freight charges for the carriage of the goods to the named destination.

CPT is particularly suitable for UK imports from EU countries because it places the responsibility for arranging and paying for transportation on the seller. This can be advantageous for UK importers who may not have experience with shipping and logistics.

Additionally, it provides greater control over the transportation of the goods and allows the importer to choose their preferred carrier or mode of transportation.

It is important to note that CPT only covers the cost of transportation to the named destination, and the seller is not responsible for any additional costs incurred beyond that point, such as customs clearance or local taxes. Therefore, it is important for the parties to agree on all aspects of the transaction and clearly define their respective responsibilities in the contract.