We are experts in import logistics. Whichever incoterms you prefer, we deliver in spec and on time, every time. We always send our COAs for your approval prior to each container delivery.

Incoterms are a very important part of the import process. We are experts in this area. Most of our customers prefer DDP (Delivered Duty Paid) which is delivery to your end destination, warehouse, manufacturer, etc., where we handle the entire process and assume all liabilities.

CIF is another popular choice where your trucks pick up containers from the port of arrival and deliver to your end destination.

Please see below for further explanation of all terms.

Incoterms, or International Commercial Terms, are a set of 11 standard rules published by the International Chamber of Commerce (ICC) that define the responsibilities, costs, and risks of buyers and sellers in international and domestic trade contracts. They clarify who handles tasks like shipping, insurance, and customs clearance, helping to avoid misunderstandings in sales agreements. The most current version is Incoterms 2020.

Define responsibilities: Specify who is responsible for the costs and risks associated with each stage of the delivery process.

Clarify tasks: Outline who is responsible for arranging and paying for shipping, insurance, and documentation.

Standardize international trade: Provide a common language for buyers and sellers to agree on trade obligations, reducing the likelihood of costly disputes.

Specify customs and formalities: Clarify who is responsible for handling export and import customs clearance and paying any duties.

An Incoterm rule is agreed upon by the buyer and seller and incorporated into their sales contract.

The rule chosen dictates the specific obligations, costs, and risks that are transferred from the seller to the buyer, and at what point during the journey.

For example, under an “Ex Works (EXW)” term, the seller’s responsibility ends when the goods are made available at their premises, while under “Delivered Duty Paid (DDP)“, the seller is responsible for most of the delivery process, including import customs clearance.

These seven rules can be used regardless of the mode of transportation (e.g., air, road, rail, or sea).

  • EXW (Ex Works): The seller makes the goods available at their premises (e.g., factory or warehouse). The buyer assumes all costs and risks from that point onward, including loading the goods.
  • FCA (Free Carrier): The seller delivers the goods to the carrier or another person named by the buyer at a specified place. Risk transfers to the buyer at this delivery point. The seller is responsible for export clearance and loading at their end.
  • CPT (Carriage Paid To): The seller pays for the carriage of the goods to the named destination, but the risk transfers to the buyer once the goods are delivered to the first carrier.
  • CIP (Carriage and Insurance Paid To): The seller pays for carriage and insurance to the named destination. Risk transfers to the buyer upon delivery to the first carrier. Under Incoterms 2020, CIP requires a higher level of insurance coverage (Institute Cargo Clauses A) than the minimum required under CIF.
  • DAP (Delivered at Place): The seller delivers the goods at the named place of destination, ready for unloading. The seller bears all risks and costs up to this point (excluding import duties/taxes).
  • DPU (Delivered at Place Unloaded): The seller delivers the goods at the named place of destination and is responsible for unloading them. This rule (formerly DAT in Incoterms 2010) makes the seller responsible for all costs and risks, including unloading, until the goods are placed at the buyer’s disposal.
  • DDP (Delivered Duty Paid): The seller is responsible for delivering the goods to the named place in the buyer’s country, including all costs and risks, import duties, taxes, and customs clearance. This places the maximum obligation on the seller.

These four rules are specifically for situations where both the seller and buyer have access to a waterway (e.g., a port).

  • FAS (Free Alongside Ship): The seller delivers the goods alongside the vessel at the named port of shipment. The buyer assumes all costs and risks from that moment.
  • FOB (Free On Board): The seller delivers the goods on board the vessel at the named port of shipment. Risk and cost transfer to the buyer once the goods are on board.
  • CFR (Cost and Freight): The seller pays the costs and freight to bring the goods to the named port of destination, but the risk transfers to the buyer once the goods are on board the vessel.
  • CIF (Cost, Insurance and Freight): Same as CFR, but the seller also must procure minimum insurance coverage against the buyer’s risk of loss or damage during carriage.

Here is a handy chart which can be found here Incoterms 2024 chart. It is a free download and I would suggest using the link for people to visit if they choose.