01
Why Incoterms matter
- They clarify specified delivery responsibilities and transfer points.
- They influence freight pricing and landed-cost comparison.
02
Common examples
- EXW, FCA, FOB, CIF, DAP and DDP are commonly encountered terms, but each has specific rules and mode-of-transport implications.
- Do not choose a term solely because it sounds familiar.
03
Use them correctly
- State the Incoterm version and named place/port where appropriate.
- Ensure buyer and seller understand who handles freight, export/import clearance and insurance under the chosen term.
Frequently asked questions
Does FOB apply to every shipment?
No. Incoterm suitability depends on transport mode and transaction structure.
Does DDP mean the buyer has no import obligations at all?
Responsibilities still depend on applicable law and the specific arrangement. Obtain professional advice for complex shipments.