TRADE COMPLIANCE 2026

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.

Manufacturer Responsibility
Buyer Responsibility

EXW (Ex Works)

Low Risk for Seller

The manufacturer makes the goods available at their factory. The buyer handles all transport, insurance, and export/import clearance.

FOB (Free on Board)

MOST POPULAR

Recommended 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 Seller

The 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-DOOR

The 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?

Our verified logistics partners can help you draft the perfect shipping agreement. Contact **BDBM Logistics** via the dashboard to get a dedicated trade advisor.