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Choosing the right Incoterm can save costs and avoid major issues in international trade 👇

🔹 EXW (Ex Works)

Seller: Makes goods available at their premises

Buyer: Handles everything from pickup to final delivery

🔹 FCA (Free Carrier)

Seller: Delivers goods to the carrier

Buyer: Responsible for main transport and beyond

🔹FAS (Free Alongside Ship)

Seller: Delivers goods alongside the vessel

Buyer: Handles loading and onward shipment

🔹FOB (Free On Board)

Seller: Loads goods on the vessel

Buyer: Takes responsibility once goods are on board

🔹 CFR (Cost and Freight)

Seller: Pays for transport to destination port

Buyer: Bears risk after goods are shipped

🔹 CIF (Cost, Insurance & Freight)

Seller: Pays for transport + insurance

Buyer: Handles import and clearance

🔹 DAT (Delivered At Terminal)

Seller: Delivers goods to terminal at destination

Buyer: Handles import and final delivery

🔹 DAP (Delivered At Place)

Seller: Delivers goods to buyer’s location

Buyer: Responsible for import duties and clearance

🔹 DDP (Delivered Duty Paid)

Seller: Handles everything including duties

Buyer: Just receives the goods

💡 Tip:

The more responsibility the seller takes (like DDP), the higher the cost—but less hassle for the buyer.