📖 The complete IMEXLOG reference for importers, exporters, and freight forwarders
From Incoterms to customs classification, documentation to compliance, this is the reference we use every day with our members — condensed and ready for you.
This guide is intentionally thorough. Bookmark it. Share it. Return to it whenever you need clarity on a rule, a document, a payment term, or a compliance obligation. It reflects current best practice across the global countries where IMEXLOG operates.
International trade is the exchange of goods and services across borders. It is governed by a complex web of national laws, international agreements, industry standards, and commercial practice. Before you trade, understand these foundations.
Goods must physically leave origin and reach destination, passing through customs, carriers, and multiple jurisdictions.
Payment must be secured, transferred, and reconciled across currencies, banks, and regulatory regimes.
Documents, data, and declarations must accompany the goods — precisely, accurately, and on time.
Incoterms (International Commercial Terms) are standardized trade terms published by the ICC that define who pays for what, where risk transfers, and who is responsible for customs and logistics at each stage. Since 2020, there are 11 rules — 7 for any mode, 4 for sea and inland waterway only.
| Code | Name | Risk passes | Cost responsibility | Best for |
|---|---|---|---|---|
| EXW | Ex Works | At seller's premises | Buyer pays everything from pickup | Buyers with established logistics |
| FCA | Free Carrier | When goods are handed to carrier | Seller pays export clearance | Most flexible for any mode |
| CPT | Carriage Paid To | When goods handed to first carrier | Seller pays carriage to destination | Multimodal shipments |
| CIP | Carriage & Insurance Paid | When goods handed to first carrier | Seller pays carriage + insurance | High-value multimodal cargo |
| DAP | Delivered at Place | On arrival at named place | Seller pays to destination (not duty) | Buyers wanting door delivery |
| DPU | Delivered at Place Unloaded | After unloading at destination | Seller pays to destination + unloading | Bulk shipments requiring unloading |
| DDP | Delivered Duty Paid | On arrival, duty paid | Seller pays everything incl. duties | E-commerce, retail imports |
| FAS | Free Alongside Ship | When goods placed alongside vessel | Seller pays to port, alongside ship | Bulk / breakbulk sea freight |
| FOB | Free on Board | When goods are on board vessel | Seller pays to on board | Traditional sea freight |
| CFR | Cost & Freight | When goods on board at origin | Seller pays freight to destination | Bulk / container sea freight |
| CIF | Cost, Insurance & Freight | When goods on board at origin | Seller pays freight + insurance | Traditional sea freight with insurance |
Documents are the currency of international trade. Mistakes delay shipments, trigger penalties, and can lead to seizure. Every document below has a specific purpose, issuer, and content requirement.
Issued by: Seller
Legal record of the sale — the foundation of every customs declaration.
Issued by: Seller
Details of what is physically in each package — used for customs and carrier.
Issued by: Carrier or freight forwarder
Contract of carriage, receipt of goods, and document of title.
Issued by: Airline or air forwarder
Non-negotiable air cargo contract and tracking document.
Issued by: Chamber of Commerce or authorized body
Confirms the country where the goods were produced — often required for duty preference.
Issued by: Insurer or broker
Evidence of cargo insurance — required under CIF and CIP terms.
Issued by: Independent inspection agency
Confirms goods meet quality, quantity, or safety standards.
Issued by: Government agriculture or health authority
Required for plant, food, and animal products.
Issued by: Importer / exporter or customs broker
Official filing to customs declaring the shipment.
Issued by: Buyer's bank
Bank guarantee of payment on presentation of compliant documents.
Every document must be consistent — same buyer, same consignee, same product description, same value, same quantity. If one document disagrees with another, customs will flag the shipment.
Customs is the gate through which every shipment must pass. Get it right and your goods move; get it wrong and your goods sit — accruing storage fees and penalties.
The HS is a six-digit international classification system maintained by the WCO. Every product in world trade has an HS code. Countries extend the code to 8, 10, or 12 digits for their own tariff schedules.
Origin determines duty rates, FTA eligibility, and labeling. Rules of origin are usually wholly obtained (mineral, agricultural) or substantially transformed (manufactured into a new product). Under FTAs like AfCFTA, USMCA, or RCEP, origin documentation must be rigorous.
Incorrect HS codes — whether intentional or not — can result in fines, seizure, and loss of trusted-trader status. If you are unsure, request a binding ruling from customs before shipping.
Payment is where risk concentrates. Choose the method that matches your relationship, transaction size, and market conditions.
Letters of Credit are governed by UCP 600, published by the ICC. It defines what banks must do, how documents are examined, and when payment is triggered. Common discrepancies that cause L/C rejection:
Compliance is not optional. Violations carry criminal penalties, regardless of industry or country. Modern exporters must screen, document, and audit every counterparty.
Screen every counterparty against UN, US (OFAC), EU, and UK sanctions lists before any transaction. Bypassing sanctions can lead to criminal liability.
Dual-use goods (technology, chemicals, defense-related) require export licenses. Confirm licensing requirements for both the destination and the end-user.
Accurate HS classification, correct valuation, truthful origin declarations. Under-declaration is fraud — regardless of intent.
Over/under-invoicing, multiple invoicing, and false descriptions are red flags. Ensure invoice values reflect market reality.
Personal and commercial data must comply with GDPR (EU), PIPL (China), LGPD (Brazil), NDPR (Nigeria) and other regimes.
Carbon reporting (EU CBAM), conflict minerals, plastic packaging rules, and sustainability disclosures are becoming mandatory.
CE (EU), FDA (US), UKCA (UK), SASO (Saudi), SONCAP (Nigeria) — certifications must be in place before goods arrive.
Forced labor rules (US UFLPA, EU CSDDD) mean supply chains must be documented and traceable.
Packaging must protect goods, comply with destination regulations, and carry information the buyer and customs require.
Cargo insurance protects against loss, damage, and delay. Even when not legally required, it is commercially essential for most shipments.
Covers all risks except those explicitly excluded. Broadest cover.
Named perils — covers a specific list of risks (fire, explosion, sinking, etc.).
Narrowest — covers major casualties only (fire, explosion, sinking, derailment).
The choice of transport mode, carrier, and route determines your cost, speed, and reliability. Match them to your cargo and customer expectations.
Every trade transaction carries multiple risks. Identify, quantify, and mitigate each one before you commit.
Non-payment, delayed payment, currency fluctuation.
Loss, damage, delay, theft during shipping.
Detention, penalties, seizure, re-export.
Disputes over quality, delivery, or payment terms.
Price drops, demand shifts, competitive pressure.
Instability, expropriation, trade bans.
FX swings eroding margins.
Supplier or buyer default.
Rules differ dramatically by region. Here are the essentials for each major trade region where IMEXLOG operates.
Before every shipment, run through these checklists. They cover the essentials — adapt them to your specific product, market, and regulatory environment.
Essential trade terminology — from Incoterms to UFLPA.
Common questions from importers, exporters, and freight forwarders.
Incoterms are internationally recognized trade terms published by the ICC that define who is responsible for costs, risks, and logistics at each stage of a shipment. They must be agreed in the contract and stated on the invoice to avoid disputes.
It depends on your experience, cargo, and logistics capability. New exporters usually benefit from FCA or FOB; experienced exporters with logistics partners can offer CIF or DAP to win business. DDP is common for e-commerce and retail imports.
Use the WCO Harmonized System as the starting point, then check your destination country's tariff schedule. For complex or regulated goods, work with a licensed customs broker or ask IMEXLOG to help with classification.
A Letter of Credit is the safest for both parties when properly structured. Cash in advance is safest for sellers but rarely accepted by buyers. Open account is common between trusted partners but carries the highest seller risk.
Not always legally, but always commercially. Cargo insurance protects against loss, damage, and delay. If you are shipping under CIF or CIP terms, insurance is the seller's responsibility. Under other terms, the buyer must arrange it.
Use the IMEXLOG Verify service — we check company registration, address, references, and can arrange factory or warehouse inspection. For buyers, we screen credit and trade history where available.
Mismatched invoice and packing list values, wrong HS codes, missing certificates, incorrect consignee details, and inconsistent product descriptions. These cause delays, penalties, and seizures.
FOB: seller delivers to the vessel, buyer pays freight and insurance. CIF: seller pays freight and insurance to the destination port. Both pass risk when goods are on board.
Sanctions can ban trade with specific countries, entities, or individuals. Violating sanctions can result in criminal liability, fines, and frozen assets. Always screen counterparties before every transaction.
A Certificate of Origin confirms the country where goods were produced. It is required for preferential tariff treatment under FTAs, and often for regulatory and statistical purposes.
This guide is provided for general educational purposes only. Trade rules, tariffs, sanctions, and documentation requirements change frequently and vary by country, product, and circumstance. The content here does not constitute legal, tax, or customs advice. Always consult a qualified professional or contact IMEXLOG directly for guidance specific to your transaction.
Our trade specialists can review your transaction, verify your counterparties, and coordinate every step from sourcing to delivery.