Reinhard von Hennigs explains INCOTERMS, or international commercial terms, set by the International Chamber of Commerce (ICC) to clearly define the responsibilities and obligations of buyers and sellers in global trade. He focuses on Delivered Duty Paid (DDP), which places maximum responsibility on the seller, highlighting the complications arising in the dynamic U.S. tariff landscape. Alternatives such as Free On Board (FOB), Delivered at Place (DAP), Free Carrier (FCA), and Ex Works (EXW) are suggested to minimize risk and responsibility for sellers. Reinhard emphasizes the importance of understanding and choosing the right INCOTERMS to achieve operational efficiency and confidence in global transactions.
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