Incoterms and logistics responsibilities for B2B orders

The Incoterm defines who pays, who carries the risk and who signs the customs

For a corporate merch order that crosses a border, the Incoterm is the contract that answers the three questions that determine the total landed cost: who pays the main carriage, who carries the risk if the cargo is lost or damaged, and who files the customs clearance at destination. We work exclusively with Incoterms 2020, which is the current version published by the International Chamber of Commerce and the one every Mexican and foreign carrier recognizes without ambiguity. Any reference to older terms, or to hybrid clauses like "FOB destination" without customs included, we reject in writing because they open the door to disputes in case of a loss.

The most common Incoterm for Mexican clients receiving at their own warehouse is DAP, delivered at place. We contract the transport, pay the freight, manage the export clearance and carry the goods to the client's door; the client carries the risk from the moment the load comes off the truck at their premises and pays the import clearance when applicable. For corporate clients on an IMMEX program, the typical Incoterm is FCA our plant, because the client prefers to take control of the transport from the border to feed their own pedimento. For clients importing into the United States, Canada or the European Union, we use DDP to their warehouse so they receive the goods ready to use with no surprise taxes at the border.

For domestic shipments within Mexico we mainly operate DAP and EXW when the client runs their own logistics. DAP delivers to the client's premises in any state, with a transport charge indexed to weight, volume and distance. EXW means the client picks up at our plant or hires the carrier of their choice; in that case our responsibility ends when the load crosses our warehouse door and we hand over the Carta Porte 3.0 with the client's carrier details. We do not recommend EXW for clients without logistics experience because the risk of in-transit damage rests entirely with them.

Cargo insurance is optional under DAP but mandatory under DDP and under every term where we carry the main risk. We work with an open policy at a Mexican AA-rated insurer, covering physical damage, total and partial theft, and verifiable shortlanded quantities at the moment of delivery. The insurance premium is quoted as a separate proforma line, normally between 0.4% and 0.7% of the declared value. For high-value shipments we recommend an "all-risk" policy with extended coverage that includes political events, strikes and natural disasters; the cost rises to between 0.9% and 1.4% of declared value, depending on destination.

Export customs clearance is our standard service under any Incoterm other than EXW. We file the export pedimento at the port of exit, manage prior permits when the product requires them (for example textile products with export quotas or products subject to sanitary regulation), and hand the client the electronic equivalent of the DEX. For operations under the client's IMMEX program, we act as subcontractor of the operation and the pedimento is signed by the client's customs broker; our production records serve as operational backup.

Carta Porte 3.0 is the CFDI complement that documents the transport of the goods from our plant to the point of delivery. It is issued the moment the cargo leaves our warehouse and carries the client's tax ID, the origin and destination address, the cargo type, weight and declared value, plus the carrier and operator data. For urban shipments within the same city the Carta Porte is generated automatically; for interstate or international shipments the complement is validated in the SAT system before the border crossing and is attached to the corresponding CFDI. Without a valid Carta Porte 3.0, the CFDI is not deductible for the client, so we issue and deliver it the same day of dispatch.