A buyer refers to the individual, business, or organization that purchases goods from a seller, typically as part of a cross-border trade transaction.
Payment of goods
The buyer is responsible for settling the invoice using agreed-upon methods such as a letter of credit, wire transfer, or trade finance tools.
Import duties and logistics
Under Incoterms (e.g., FOB, CIF, DDP), the buyer may manage freight, insurance, customs clearance, and payment of import duties or taxes.
Documentation coordination
The buyer may provide or coordinate essential documents, including the commercial invoice, packing list, and import permits, to ensure smooth customs processing.
Transfer of risk and ownership
Based on the agreed trade terms, the buyer assumes ownership and risk at a specific point in the shipping journey. For example, once goods are loaded at the port of origin or arrive at the destination country.
Understanding the buyer’s responsibilities is essential for ensuring compliance with customs regulations, avoiding delays, and minimizing costs in international freight and logistics. The buyer’s duties are typically outlined in the sales contract and defined by internationally recognized Incoterms.
