A buyer is the individual or business that purchases goods from a seller. In international trade, the buyer agrees to the purchase terms and may be responsible for arranging transportation, import clearance, and delivery, depending on the sales contract and agreed Incoterms® rule.
The buyer’s obligations depend on the transaction, but commonly involve:
- Payment: Paying the seller according to the agreed price and payment terms.
- Shipping arrangements: Booking and paying for freight when required under the agreed Incoterms rule.
- Import clearance: Arranging customs declarations, permits, and payment of import duties and taxes when responsible for import formalities.
- Shipment information: Providing accurate consignee details, delivery instructions, and other information needed for transportation.
Under FOB, for example, the buyer generally arranges and pays for the main ocean freight. Under DDP, the seller takes on substantially more responsibility for transportation and import clearance.
Incoterms determine when shipping risk transfers between the seller and buyer, but they do not determine when ownership of the goods changes.
The buyer purchases the goods, while the consignee is the party designated to receive the shipment.
They are often the same company, but not always. A buyer may appoint a warehouse, distributor, or logistics provider as the consignee.
For more detail, see our guide to consignees.
A German retailer purchases furniture from a supplier in China under FOB Shanghai terms.
The Chinese supplier arranges export clearance and delivers the goods on board the vessel at Shanghai. The German buyer arranges the ocean freight, handles import clearance, and pays the applicable duties and taxes.
The agreed trade terms help both parties understand their shipping responsibilities before the goods leave China.
Is the buyer always the importer?
No. The buyer and importer are often the same company, but another party may act as the importer of record under the applicable regulations and contractual arrangements.
Does the buyer always pay for shipping?
No. Freight payment depends on the agreed Incoterms rule and sales contract. Under some terms, the seller pays for transportation to the named destination.
Is the buyer the same as the consignee?
Not necessarily. The buyer purchases the goods, while the consignee is named to receive them. They may be different parties.
International purchasing involves more than placing an order. Transport arrangements, supplier coordination, and customs documentation all affect delivery. ASLG provides international freight solutions for businesses importing goods from China, including air freight, ocean freight, and cargo consolidation.
