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There are a total of 10 different types of Incoterms, which are broken down into two main categories: Those that apply to any mode of transport and those that apply to sea and inland waterway transport only. The most commonly applied Incoterms used for goods being imported into Timor-Leste are FOB (Free On Board), CFR (Cost and Freight), and CIF (Cost, Insurance and Freight).

Yes, under Article 140 of the Customs Code (Decree Law 14/2017), you can inspect your goods, however, you need to obtain our permission to do so first. In some cases, these type of inspections may be needed to establish or confirm the correct Harmonized System (HS) classification code.

To facilitate commerce around the world, the International Chamber of Commerce (ICC) publishes a set of Incoterms, officially known as international commercial terms. Globally recognized, Incoterms prevent confusion in foreign trade contracts by clarifying the obligations of buyers and sellers. Parties involved in domestic and international trade commonly use them as a kind of shorthand to help understand one another and the exact terms of their business arrangements. Some Incoterms apply to any means of transportation; others apply strictly to transportation across water.

Incoterms identify the division of costs and risks between the buyer and seller when shipping internationally. Unlike national trade policies, Incoterms rules are universal, providing clarity and predictability to business around the world. Including the Incoterm is a requirement on all commercial invoices, as doing so greatly reduces the risk of potentially costly misunderstandings or liabilities.

FOB (Free On Board) is an Incoterm used in international trade. FOB is one of the three Incoterms commonly used in Timor-Leste, and means, “When shipping on FOB terms the seller is responsible for all origin charges. This includes loading onto the named vessel. The risks and costs are then transferred to the buyer. The buyer is then responsible for the freight, any insurance required and all charges to final destination.”

CFR (Cost and Freight) is an Incoterm used in international trade. CFR is one of the three Incoterms commonly used in Timor-Leste, and means, “The CFR incoterm means all charges, including freight up until the intended port of destination, are born by the seller. However, as a buyer be cautious. The risk for the buyer takes over when the goods are loaded on the vessel, so even though you are not paying for the freight you may want to insure your shipment. All remaining charges at the destination are then settled by the buyer.”

CIF (Cost, Insurance and Freight) is an Incoterm used in international trade. CIF is one of the three Incoterms commonly used in Timor-Leste, and means, “This term is the same as CFR only the seller is responsible for the goods and any insurance up until the goods arrive at the intended destination port. Once the goods arrive the buyer takes on all risks and final associated charges.”

When importing or exporting goods, you must apply the correct commodity code, as per the Timor-Leste Harmonized System tariff. In addition to providing the government with important trade related data, the correct classification of your goods is a legal requirement under Article 154 of the Customs Code (Decree Law: 14/2017). You can use our handy “Tariff Finder” which you can find on the here (embed link to tariff finder), or

The Harmonized System is an international nomenclature for the classification of goods, developed by the World Customs Organization (WCO). It allows participating countries to classify traded goods on a common basis for customs purposes. The HS comprises about 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification.

When importing or exporting any commercial goods, you must utilize the Harmonized Commodity Description and Coding System. In most countries, this is simply known as the “HS”. In addition to providing the government with important trade related data, the correct classification of your goods is a legal requirement under Article 154 of the Customs Code (Decree Law: 14/2017). These codes are used extensively by over 200 countries who are contracted to the Convention on the Harmonized Commodity Description and Coding System (also known as the ‘HS Convention’). Customs authorities not only use HS codes to identify what goods are being shipped, they also use them to apply relevant customs duties, taxes and regulations. Governments also use HS codes to collect global trade statistics and create tariffs. Private companies use the same system to monitor goods, develop and advocate trade policies, collect statistics on traffic and transport as well as monitor prices. You can use our handy “”Tariff Finder”” which you can find on the here (embed link to tariff finder), or

Gross Vehicle Weight (GVW) is the maximum operating weight/mass of a vehicle, as specified by the manufacturer including: the vehicle’s chassis; body; engine; engine fluids; fuel; accessories; driver; passengers; and the maximum cargo that can be safely carried (excluding that of any trailers). You can usually find the GVW on a plate located on a commercial vehicle or by referring to the manufacturer’s documentation or webpage. It is important to identify the correct GVW as this will help determine the correct Harmonized System (HS) code.

Completely Knocked Down (CKD) is used to describe a product that is sold or transported in a set of parts, which must be put together before the product can be used by the customer. For example: ‘Motorcycles were transported in completely knocked-down kits, which reduced transport costs because less space was needed to transport them’.

You should classify drinks that have small quantities of alcoholic spirits in them under “22.08” (Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol.; spirits, liqueurs, and other spirituous beverages).

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