Before quoting overseas: agree Incoterms responsibilities with the buyer
Build a quotation responsibility sheet covering transport, named place, edition, customs, insurance and risk transfer.
Editorial desk
Before quoting overseas, agree who will perform each part of the transaction. Trade.gov explains that Incoterms allocate tasks, costs and risks between seller and buyer. A practical starting point is a responsibility sheet covering delivery, transport and customs. Use it to understand the work on both sides before deciding whether a price is workable.
Confirm the mode of transport before narrowing the rule choices. The guide lists seven rules for any mode and four for sea and inland waterway transport. Discuss the proposed route and handover location with the logistics provider, then take suitable options to the buyer. Do not choose an abbreviation simply because it appeared on an earlier quotation.
Record the named place and edition alongside the chosen rule. The guide says parties may agree to different editions but must identify the version clearly. Put the full proposed condition in the quotation draft, have the buyer check the location, and check that later contracts and shipping documents refer to the same agreement.
Separate export and import formalities into two columns. Each rule addresses responsibility for relevant authorizations, customs procedures and their costs. Ask both parties to confirm what they can actually arrange. Keep unresolved questions for a customs or other qualified adviser, so responsibility is clear before obtaining prices for the services involved.
Next, review carriage, insurance, packing and pre-shipment inspections individually. The guide explains that rules address which party, if any, must arrange carriage or cargo insurance, together with associated costs. Fill in each item instead of assuming that paying freight includes every service. Leave open questions visible until both parties resolve them.
Mark the delivery point and the point where risk passes. Trade.gov explains that each rule specifies delivery obligations and when loss or damage risk moves from seller to buyer. Walk through one shared shipment route and record the handover separately from arrangements to pay the carrier. Confirm that both sides understand where responsibility changes.
Discuss payment and ownership separately. Incoterms do not settle every sale condition, determine payment method or timing, transfer ownership, or provide dispute-resolution mechanisms. Add these matters to a contract discussion column beside the responsibility sheet. Also confirm the actual documents needed for import clearance instead of leaving only an Incoterms abbreviation.
The next deliverable is a quotation attachment showing the rule, edition, place and unresolved responsibility questions. This is a suggested way to turn the guide’s allocation of work into a negotiation record. Check the complete ICC rules and consult legal or freight professionals as appropriate before committing to the actual transaction.