Mastering Incoterms 2020
The International Commercial Terms (Incoterms) define the responsibilities of buyers and sellers for the delivery of goods under sales contracts. Essential for every BDBM trade.
EXW (Ex Works)
Low Risk for SellerThe manufacturer makes the goods available at their factory. The buyer handles all transport, insurance, and export/import clearance.
FOB (Free on Board)
MOST POPULARRecommended for Sea Freight from Chittagong.
The manufacturer delivers goods to the port and handles export clearance. Once loaded onto the vessel, risk transfers to the buyer.
CIF (Cost, Insurance, Freight)
High Service from SellerThe manufacturer pays for transport and insurance to the destination port. Highly attractive for new buyers who lack local logistics knowledge.
DDP (Delivered Duty Paid)
DOOR-TO-DOORThe manufacturer handles everything—from factory floor to the buyer's warehouse door, including all taxes and duties. Rare in bulk B2B but common for premium sampling.
Unsure which term to use?
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