Incoterms are standard trade terms that set out who is responsible for each part of shipping. Choosing the right one avoids surprises on cost and risk.
EXW (Ex Works)
The buyer collects the goods from the seller's premises and handles everything after that, including export clearance in most cases.
FOB (Free On Board)
The seller delivers the goods on board the vessel at the named port and handles export clearance. Risk passes to the buyer once the goods are on board.
CIF (Cost, Insurance and Freight)
The seller pays for freight and minimum insurance to the destination port, but risk passes to the buyer once the goods are loaded.
Which to choose
- Have your own forwarder: EXW or FOB
- Want the supplier to arrange shipping: CIF
Always state the Incoterm and the named place in your purchase order. Discuss shipping with us.