We sell from Europe to Mexico and the customer asks for DDP. What does that mean for us and what are the alternatives?
Kold Gold Forum · Partner Network
Incoterms 2020: which one to use for imports into Mexico?
1 answer
Kold Gold answer Kold Gold The Incoterm defines how far the seller's costs and risks go. For imports into Mexico the most common are:
· EXW / FCA: the buyer controls almost the whole journey; useful if it has its own forwarder. · FOB / CFR / CIF (ocean): the seller delivers on board at origin or pays the freight; the buyer clears in Mexico. · DAP: the seller delivers at destination without clearing the import. · DDP: the seller also takes on the import, which requires an importer in Mexico and paying Mexican duties and taxes. That is why it is usually solved with an importer of record.
Kold Gold helps choose the Incoterm based on who has structure in each country and coordinates the Mexico leg. The contractual decision belongs to the parties.
For information only.
For information only; not legal advice. Times are always estimates.
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