International trade

Incoterms are the terms and conditions of delivery of goods between buyer and seller. They describe all obligations, risks and costs involved in a transaction. Incoterms are known and accepted worldwide. They reduce the risk of misunderstandings between all who are involved in the logistcs process, because it is clear in advance who is responsible for what. It's no coincidence Incoterms have to be included on your commercial invoice. The most common Incoterms are: EXW (Ex-Works), DAP (Deliverd at Place) and DDP (Deliverd Duty Paid). As of 1/1/2020 Incoterms have been updated to Incoterms® 2020. Be well informed about the obligations and new possibilities of the updated Incoterms.

When you import goods from outside the EU for processing or repair, and afterwards export the goods to a non-EU country, you can use Inward Processing (IP). In order to get relief from Customs Duty, import VAT and other costs associated, you must be in the possession of an active inward processing licence.

Outward processing allows Community goods to be processed outside the EU and, when they come back into the EU to be put into free circulation, that duty has to be paid only on the value added abroad. Outward processing is the opposite of inward processing. In order to get relief from Customs Duty, import Vat and other costs associated, you have to be in the possession of an active outward processing license.

The words ‘provenance’ and ‘origin’ of goods are often used interchangeably. Nevertheless, they have different meanings. Particularly in the world of customs matters. ‘Provenance’ relates to the customs status of the goods. Are they Union goods (goods that are produced in the EU, or that have already been imported from a non-EU country) or non-Union goods (goods from non-EU countries)? ‘Origin’ refers to where a product is manufactured, produced or grown.