𝐈𝐍𝐂𝐎𝐓𝐄𝐑𝐌𝐒 & 𝐈𝐌𝐏𝐎𝐑𝐓 𝐃𝐔𝐓𝐈𝐄𝐒 & 𝐓𝐀𝐑𝐈𝐅𝐅𝐒 – 𝐖𝐇𝐎 𝐑𝐄𝐀𝐋𝐋𝐘 𝐏𝐀𝐘𝐒?
DO NOT UNDERESTIMATE THE POWER OF INCOTERMS WHEN MANAGING COST & SUPPLY CHAIN RISK & DAY-TO-DAY OPERATIONS
As Supply Chain Risk and Cost Down Experts, we’ve had several conversations about the real-world impact of Incoterms – especially when it comes to who ends up paying for import duties and tariffs and how that affects overall landed costs. In a time when many companies are under pressure to reduce costs and uncover hidden savings, having clarity on where responsibilities truly lie along the supply chain is more important than ever. This isn’t just about logistics – it’s about having the full picture when it comes to 𝐜𝐨𝐬𝐭 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 and 𝐫𝐢𝐬𝐤 𝐦𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧.
That’s why we have put together a SIMPLIFIED visual below. It shows, at a glance, which party is responsible for import duties and potentially punitive tariffs under the most common Incoterms.
𝐒𝐩𝐨𝐢𝐥𝐞𝐫: in most cases, it’s still the buyer – unless you’ve explicitly agreed on DDP.
Understanding these differences can help avoid surprises, improve negotiation outcomes, and make sure we’re not missing out on hidden cost drivers that could quietly erode margins.
Ask yourself: Have you come across any surprises related to Incoterms, duties, or customs responsibilities in the last couple of weeks? If so, what are the reasons and
Keep in mind: Incoterms are a powerful tool to manage your supply chain operations and streamline your logistics processes. At the same time, it is an even more powerful way to manage COSTS and SUPPLY CHAIN RISKS. Ensure your Buyers and Supply Chain Specialists understand the financial and operational impact of your preferred INCOTERMS. For more details, please get in touch.
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