Responsibility quick reference
Why Incoterms matter
Incoterms define practical responsibilities between buyer and seller. They affect pickup, export process, main freight, insurance, import clearance, duties, taxes, and final delivery. A quote can look cheap when responsibilities are missing.
| Term | Typical seller responsibility | Common buyer attention point |
|---|---|---|
| EXW | Make goods available at seller location. | Buyer may need to handle pickup and export process. |
| FOB | Deliver goods on board at the origin port. | Buyer usually controls main freight and destination charges. |
| CIF | Arrange cost, insurance, and freight to destination port. | Import clearance and inland delivery still need planning. |
| DAP | Deliver to named destination before import duty settlement. | Buyer usually handles duties and import clearance. |
| DDP | Deliver with import clearance and duties included. | Seller needs strong destination compliance capability. |
Questions to confirm before shipment
- Who pays origin pickup and export declaration charges?
- Who controls the main freight booking?
- Who arranges insurance and claim documents if cargo is damaged?
- Who is importer of record at destination?
- Are duties, taxes, and final delivery included in the quote?
FAQ
What is the main difference between FOB and CIF?
Under FOB, the buyer usually controls main freight after goods are loaded at the origin port. Under CIF, the seller usually arranges cost, insurance, and freight to the destination port.
Does DDP include import duties?
DDP usually includes import clearance and duties handled by the seller, but the exact scope must be confirmed in the sales contract and destination compliance plan.