Definition of INCOTERM
The INCOTERM are international commercial terms that establish the rules for the interpretation of commercial terms used in international sales contracts.
These terms are essential to ensure clear and unambiguous understanding.
What are INCOTERMs used for?
The INCOTERM are developed and published by the Chamber of international trade (CCI) and are updated periodically to reflect changes in the international trade.
INCOTERMS are widely accepted and used.
They are a fundamental tool to guarantee clarity and transparency in international commercial transactions.
What are imports in Spain?
Imports into Spain refer to the introduction of goods and services into the country from other countries.
Spain is one of the most important countries in the European Union (EU) in terms of imports and exports. Its economy depends largely on international trade.
Imports into Spain are subject to a series of regulations and legal requirements, including the need to comply with safety and quality standards, the payment of taxes and duties, and the presentation of customs documentation and authorizations.
What INCOTERM should I use when importing into Spain?
The choice of the appropriate INCOTERM for an import into Spain will depend on several factors, including the nature of the merchandise, the place of origin, the means of transportation used and the business relationship between buyer and seller.
Most common INCOTERM
Below are the most common INCOTERMS used in imports in Spain:
EXW (Former Works)
This term indicates that the seller has delivered the merchandise to its establishment and that the buyer is responsible for all transportation, insurance and customs formalities necessary to bring the merchandise to the final destination in Spain.
This term is suitable for transactions where the buyer has experience in international trade and is familiar with customs and transportation requirements in Spain.
FOB (Free on Board)
This term indicates that the seller has delivered the goods on board the means of transport chosen by the buyer at the port of origin.
The buyer is responsible for all costs and risks associated with sea transportation from the port of origin to the port of destination.
This term is suitable for transactions where the buyer wishes to manage and control the maritime transport.
Tax ID No. (Cost, Insurance and Freight)
This term indicates that the seller is responsible for the costs and risks associated with the maritime transport of the merchandise from the port of origin to the port of destination, as well as for maritime transport insurance.
The buyer is responsible for the costs and risks associated with land transportation and importation of the merchandise into Spain.
This term is suitable for transactions where the seller wishes to control and manage shipping and insurance, and the buyer wishes to receive the goods at their final destination in Spain without additional concerns.
DDP (Delivered Duty Paid)
This term indicates that the seller is responsible for all costs and risks associated with the delivery of the goods to the final destination, including transportation costs, insurance, and import duties and customs duties.
This term is suitable for transactions where the seller wants to offer a full door-to-door delivery service.
DAP (Delivered at Place)
This term indicates that the seller is responsible for the costs and risks associated with transporting the goods to the destination, but the buyer is responsible for the costs and risks associated with import and customs clearance.
This term is suitable for transactions where the buyer wants to control the import process and customs clearance.
Conclusion
In short, choosing the right INCOTERM is crucial to ensure a clear and unambiguous understanding of the obligations, costs and risks associated with the delivery of goods upon import into Spain.
The choice of the appropriate INCOTERM will depend on several factors, including the nature of the merchandise, the place of origin, the means of transport used and the commercial relationship between the buyer and the seller.
It is important to note that INCOTERMS are only part of the import process into Spain and that there are other regulations and legal requirements that must be met.
Therefore, it is advisable to seek the advice of experts in international trade and customs to ensure a successful import from Spain.
At RRYP we specialize in international trade and can help you choose the right incoterm to sell your products.
Therefore, if you need help, come to us, we are at Avda. Sta. Mª de Trassierra, 98, Córdoba or you can contact us by phone at +34 957 858 952.
RRYP Global, lawyers experts in international contracts.
