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Incoterms for Importers: EXW, FOB, CIF and DDP in Plain Language

Shipping1 min read

Incoterms for Importers: EXW, FOB, CIF and DDP in Plain Language

Incoterms decide who pays for what and who carries risk at each step of a shipment.

EXW and FOB

EXW means you collect from the factory and carry nearly all cost and risk. FOB means the seller loads the goods onto the vessel; you take over from there.

CIF and DDP

CIF adds sea freight and insurance to the destination port. DDP puts delivery, duties and taxes on the seller. The right choice depends on your experience, your freight options and how much control you want.

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