Import

On January 1st 2021 a free trade agreement between the European Union and the United Kingdom has gone into effect, which will alter the way goods can be imported into the United Kingdom from the European Union and vice versa. The changes outlined below pertain to the import of goods using preferential rates.

When goods are bought or sold "Ex Works" (EXW) it means that the Seller is making the goods available at their factory or warehouse. The buyer is then free to come and pick up the goods. Ex Works places full responsibility for cost and risk with the buyer, as the buyer has to arrange everything.

Whether you are importing or exporting goods, and whether you are a buyer or a seller, the chances are high that you will encounter Incoterms.

When goods are bought or sold “Free on Board” (FOB) it means that the seller delivers the goods to a ship at a port previously agreed to by the seller and the buyer. The seller loads the goods onto the ship. The buyer then takes care of the import formalities and transportation to the final destination. Free on Board is one of the oldest Incoterms. It dates back to when goods were carried by sailing ships and it was one of the terms when the Incoterms were first released in 1936. It is also one of the most used commercial terms.

Norway is not a member state of the European Union, but it is a member of the European Economic Area. This means that Norway sets its own tariffs on goods from outside the single market and at the same time, Norwegian goods are imported into the European Union tariff-free.

Since January 2020 the Incoterms 2020 are in effect. Every ten years these Incoterms are updated.