GroeNoord Global operates as an international trading company and follows internationally recognized Incoterms (International Commercial Terms) established by the International Chamber of Commerce (ICC).
These terms define the responsibilities of buyers and sellers in international trade transactions.
1. EXW – Ex Works
Under EXW terms:
The seller makes goods available at their premises.
The buyer is responsible for:
Transportation
Export documentation
Shipping
Import clearance
This term places maximum responsibility on the buyer.
2. FOB – Free On Board
Under FOB terms:
The seller delivers goods onto the shipping vessel at the agreed port.
The buyer assumes responsibility once the goods are loaded onto the vessel.
Buyer responsibilities include:
Freight
Insurance
Import clearance
3. CIF – Cost, Insurance, and Freight
Under CIF terms:
The seller arranges and pays for shipping to the destination port.
The seller also provides insurance for the shipment.
However, the risk transfers to the buyer once the goods are loaded onto the vessel.
4. Importance of Incoterms
Incoterms help define:
Shipping responsibilities
Risk transfer
Cost allocation
Documentation requirements
The applicable Incoterm will always be specified in the sales agreement, quotation, or invoice issued by GroeNoord Global.
5. Custom Agreements
In some cases, GroeNoord Global and the buyer may agree on specific trade arrangements that differ from standard Incoterms.
Such agreements will be clearly stated in written contracts.