Key takeaways
- Incoterms are standard trade terms published by the International Chamber of Commerce.
- They define who pays for and carries risk on each leg of a shipment.
- Your Incoterm decides what your forwarder needs to quote.
The terms you'll see most
| Term | Seller handles | Buyer handles |
|---|---|---|
| EXW (Ex Works) | Making goods available at their premises | Everything from collection onward |
| FOB (Free On Board) | Delivery onto the vessel at the origin port | Ocean freight, insurance, import and delivery |
| CIF (Cost, Insurance & Freight) | Ocean freight and minimum insurance to destination port | Import clearance, duties and delivery |
| DAP (Delivered At Place) | Transport to the named destination | Import clearance and duties |
| DDP (Delivered Duty Paid) | Everything including import duties | Unloading at destination |
Why it matters
Under CIF your supplier books the ship, but you still need clearance and delivery in the UAE. Under EXW you control the whole chain. Tell your forwarder the Incoterm so the quote covers exactly your part.
Frequently asked questions
Which Incoterm is best for an importer?
It depends on control, cost and experience. Many importers prefer FOB so they control the main freight while the supplier handles export.
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