Incoterms are standard trade terms that define who is responsible for transport, insurance, duties and risk at each stage of a shipment. Choosing the right one avoids disputes and unexpected costs.
EXW: Ex Works
The seller makes goods available at their premises. The buyer handles everything else, including export clearance. It gives the buyer the most control, but also the most responsibility.
FOB: Free On Board
The seller delivers goods onto the vessel at the port of origin and handles export clearance. The buyer pays the main freight and takes on risk once the goods are on board. It is one of the most common terms for sea freight.
DDP: Delivered Duty Paid
The seller delivers to the buyer's door with duties and taxes paid. It is the most convenient term for the buyer, but costs are usually built into the price.
Not sure which term to agree with your supplier? Our team can advise based on your product and destination.
