Understanding Incoterms 2025 and Their Application in Your Imports 

If you have ever imported or exported goods, you have probably heard about Incoterms. But do you really know what they mean and how they impact your business operations? In this article, we explain what they are, why they are crucial in international trade, and what changes the Incoterms 2025 update brings. 

If importing from China is part of your business, understanding these terms will save you time, money, and many headaches. This is where Sinergia Trading comes in—your strategic partner in trade with China. 🚀  

What Are Incoterms and Why Are They Important? 

Incoterms (International Commercial Terms) are international rules created by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade. 

In other words, they determine who pays for what and who is responsible for what in the transportation of goods. From shipping costs to insurance and customs procedures, each Incoterm clearly defines the obligations of both parties. 

🔹 Why are they so important? 

• They prevent misunderstandings and disputes. 

• They clearly define who assumes costs and risks at each stage of transportation. 

• They are recognized and used worldwide, facilitating international negotiations. 

💡 Quick Example: If you purchase goods under the FOB (Free on Board) Incoterm, the supplier in China is responsible for the goods until they are loaded onto the ship. From that moment, all costs and risks are transferred to you as the buyer. 

At Sinergia Trading, we help our clients choose the Incoterm that best suits their business model, always ensuring the best balance between costs, risks, and delivery times. 

Changes and Updates in Incoterms 2025 

Incoterms are updated periodically to reflect the realities of global trade. The Incoterms 2025 version introduces several key adjustments: 

🔹 Greater clarity in costs and responsibilities: Some definitions have been simplified to avoid confusion between buyers and sellers. 

🔹 Adjustments to Incoterms related to e-commerce: With the rise of online trade, terms like DAP (Delivered At Place) and DDP (Delivered Duty Paid) have been refined to better reflect their use on e-commerce platforms. 

🔹 Revision of transportation terms: Responsibilities related to insurance and risks have been updated, especially for CIF (Cost, Insurance, and Freight) and CIP (Carriage and Insurance Paid to). 

📌 Important: Although changes are not always drastic, importers and exporters must review the new version to ensure they are using the most appropriate terms. At Sinergia Trading, we ensure that our clients always work with the correct Incoterms for every transaction. 

Analysis of the Most Commonly Used Incoterms 

Although there are 11 Incoterms, some are more commonly used when importing from China. Here are the most relevant ones for you: 

✅ EXW (Ex Works – At Factory) 

The supplier only manufactures the product. As the buyer, you are responsible for everything: transportation, insurance, customs clearance, etc. 

✅ FOB (Free on Board – Free Aboard) 

The seller handles paperwork and costs until the goods are loaded onto the ship. From that point, the responsibility shifts to the buyer. 

✅ CIF (Cost, Insurance, and Freight) 

The supplier in China covers the cost of transportation to the destination port, but the buyer assumes responsibility for the product after shipment. 

✅ DDP (Delivered Duty Paid – Delivered with Duties Paid) 

The seller handles the entire process, including transportation, customs, and taxes. As the buyer, you simply wait for the goods at your warehouse. 

📌 Which one is best for you? At Sinergia Trading, we analyze each case individually to determine which Incoterm maximizes your benefits and minimizes your risks. 

How to Choose the Right Incoterm for Your Business 

Choosing the right Incoterm can save you thousands of dollars and reduce risks in your imports. Here are some key factors to consider: 

✔ Experience level in imports: If you are a beginner, a DDP agreement may be safer, as the supplier handles everything. 

✔ Order volume: For large orders, it is advisable to negotiate FOB or CIF and manage logistics with your own purchasing agent. 

✔ Control over costs and logistics: If you want full control over transportation and customs costs, EXW may be the best option. 

✔ Delivery time: In some cases, certain Incoterms can speed up shipments depending on the supplier’s logistics conditions. 

📌 Not sure which Incoterm suits you best? At Sinergia Trading, we advise you to help you make the best decision and optimize every import transaction. 

Conclusion 

The Incoterms 2025 are a fundamental tool in international trade. Choosing the right term can mean the difference between a smooth import or a logistical nightmare. 

At Sinergia Trading, we make sure that every trade operation is backed by the most appropriate Incoterm, protecting your investment and ensuring efficiency in your supply chain. 

📩 Contact us and let the experts handle everything! 

Frequently Asked Questions About Incoterms 2025

What changes with Incoterms 2025?

The changes include greater clarity in responsibilities, adjustments for e-commerce, and updates in insurance and transportation risks.

How many Incoterms exist, and which one should I use?

There are 11 Incoterms. The right one depends on how much control you want over costs, logistics, and insurance.

Can I negotiate the Incoterm with my supplier in China?

Yes, Incoterms are flexible and depend on the agreement between both parties. It is always recommended to negotiate to get the best option.

How can Sinergia Trading help me?

We advise you on choosing the most suitable Incoterm, manage logistics, and ensure your import process is efficient and secure. 

📢 Import with confidence and ensure your success with the right Incoterms. Let’s talk! 

🔗 Contact us now