Ramtin team · · 4 min read
Incoterms are international rules that define where, in a deal, freight costs and risk pass from seller to buyer.
EXW — Ex Works
The seller only makes goods ready at the factory. Everything after that, from loading to export clearance, is on the buyer.
FOB — Free On Board
The seller delivers goods onto the vessel at the origin port. From there, freight cost and risk belong to the buyer. The most common choice for China purchases.
CIF — Cost, Insurance and Freight
The seller pays freight and insurance to the destination port, but risk passes to the buyer at loading.
DDP — Delivered Duty Paid
The seller handles everything to the buyer's door, including import duties.
The right Incoterm depends on your shipping experience, budget and how much control you want.
- #logistics
- #Incoterms