Buyer guide
Four incoterms, and who pays for what.
An incoterm says where our job ends and yours begins. You pick one on your quote list and the price you receive is for that term. Delivered, duty paid is available.
What each one covers
EXW · ex works
- We handle
- The goods, ready at the factory
- You handle
- Collection, all transport, clearance and duty
FOB · free on board
- We handle
- Loading on board at the port of departure
- You handle
- Main freight, insurance and everything after it
CIF · cost, insurance, freight
- We handle
- Main freight and marine insurance to your destination port
- You handle
- Import duty, clearance and onward delivery
DDP · delivered, duty paid
- We handle
- Everything to your door, including import duty and clearance
- You handle
- Receiving the goods
Which one to choose
- DDP if you want one price and no import handling.
- CIF if you clear the goods yourself at the destination port.
- FOB or EXW if you already work with a freight forwarder.
Good to know
The same product costs you less under EXW than under DDP, because less of the journey is ours. Clause 5 of the terms of trade sets out when title and risk pass.