Incoterms
Incoterms are internationally recognised rules that define who pays for transport, insurance, export/import clearance and risk transfer between seller and buyer. Choosing the right term avoids disputes and unexpected costs at origin or destination.
Why they matter
Your commercial invoice, purchase order and shipping instructions should all reference the same Incoterm. Misalignment between parties is one of the most common causes of delayed releases, wrong duty payments and cargo held at port.
Commonly used terms
- EXW (Ex Works) — Buyer arranges collection from the seller's premises; maximum responsibility on the importer.
- FOB (Free on Board) — Seller delivers goods on board the vessel at named port; risk passes when cargo is on board.
- CIF (Cost, Insurance & Freight) — Seller pays freight and minimum insurance to named port; risk still passes on board at origin port.
- CFR (Cost & Freight) — Similar to CIF but insurance is the buyer's responsibility.
- DAP (Delivered at Place) — Seller delivers to named place; buyer handles import clearance and duties.
- DDP (Delivered Duty Paid) — Seller bears maximum obligation including import duties.
How we help
Our team can advise which Incoterm best suits your lane, insurance needs and customs capability. This is guidance only — your contract of sale with your supplier or customer remains your responsibility.