The Incoterms, such as EXW, CFR, DAP, for example, provide clarity as to which party should arrange the transport, and which party pays for which part of the transport cost.
Furthermore, and something which is often overlooked, Incoterms also identify at what point in the transport chain the risk transfers from seller to buyer. There are cases where there is an overlap of risk that does not necessarily follow suit with who pays the freight bill.
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