Incoterms® explained: UK & EU trade risks after Brexit

Kevin  Shakespeare
Kevin Shakespeare
Director of Strategic Projects and International Development, The Chartered Institute of Export & International Trade, United Kingdom of Great Britain and Northern Ireland
Published 30 Dec 2025

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A UK trade expert explains how Incoterms® are used and misunderstood in UK-EU trade after Brexit, and what compliance risks customs and trade professionals need to watch for.

Topics covered:

  • How EU exit changed the use and understanding of Incoterms in UK-EU/Great Britain-EU trade
  • The four most commonly used Incoterms in this trade lane: DAP, DDP, EXW and FCA
  • DDP risks: who carries the customs debt, import VAT and customs declaration liability
  • The EU-UK Trade and Cooperation Agreement and evidencing origin for zero tariffs
  • EXW risks: UK customs declarations, indirect representation, and global risks such as circumvention, misvaluation and sanctions-busting
  • Why some traders are shifting towards DAP and FCA, and past ICC UK discussions on Incoterms 2020
  • De minimis changes in the US, EU and UK, and e-commerce/online marketplace liability
  • Deep-sea trade Incoterms choices (CIF vs FOB) for imports from Asia
  • Letters of credit, UCP 600 and bill of lading risks under FOB
  • Cargo insurance and the Institute Cargo Clauses (A vs C), including general average, war/strikes and piracy exclusions
  • How Incoterms disputes are typically resolved (English law, arbitration, ICC) rather than through case law

For a broader overview of the topic, please watch the full recording. The slides are available in the Resources section.

Please note that this summary was generated using AI, based on the recording and available slides.

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