Incoterms 2020 explained for importers and exporters
Who pays, who's at risk, and how to pick the right Incoterm to protect your margin.
Why Incoterms matter
Incoterms are the international rules that define who is responsible for cost, risk and formalities at each stage of a shipment. Choosing the wrong one can quietly erode your margin or leave you exposed.
The most-used terms
- EXW — buyer handles everything from the seller's door
- FOB — seller delivers on board; risk passes at the port of loading
- CIF — seller pays freight and insurance to destination port
- DAP — seller delivers to destination, buyer clears import
- DDP — seller delivers cleared, duties paid
Choosing the right term
Pick the term that matches how much of the journey you want to control. We review your contracts and recommend terms that protect cost, risk and clarity.
