What are Incoterms?
Incoterms are standardized trade terms published by the International Chamber of Commerce. They define where responsibility, cost and risk transfer from seller to buyer during an international shipment.
The most common terms
- EXW (Ex Works): buyer handles everything from the seller’s door
- FCA (Free Carrier): seller delivers to a carrier nominated by the buyer
- FOB (Free on Board): seller loads goods on the vessel; ocean only
- CIF (Cost, Insurance & Freight): seller pays freight and insurance to destination port
- DAP (Delivered at Place): seller delivers to destination; buyer pays import duties
- DDP (Delivered Duty Paid): seller pays everything including duties
Choosing the right term
New exporters often prefer FCA or DAP because they balance control and responsibility. DDP offers the best customer experience but requires the seller to understand destination taxes. Our team can recommend a term for each trade lane.
This guide is general information, not legal advice. Regulations change — contact our team to confirm requirements for your specific shipment.