Incoterms 2020 Explained
Who pays for transport, insurance, and customs under each International Commercial Term — EXW through DDP, FOB, CIF, and more.
Featured guide
Start here
Incoterms 2020 Explained: Which One Should Your Business Use?
Incoterms define who pays for what in international trade. Choosing the wrong one can cost you thousands. Here is a plain-English guide to all 11 Incoterms 2020.
Read guideAll Incoterms guides
HS Codes Explained: How to Find the Right Code for Your Cargo
HS codes determine your import duty rate in every country. Getting them wrong is costly. Learn how the Harmonised System works and how to find the right code for your products.
DDP vs DAP vs FOB: Understanding International Delivery Terms
DDP, DAP, and FOB are the three most commonly misunderstood Incoterms. Learn exactly what each one means, who pays what, and which is right for your trade.
Import Documentation Checklist: Everything You Need for a Smooth Customs Clearance
Missing or incorrect import documents are the number one cause of customs delays. Use this complete checklist to make sure every shipment is documented correctly.
How Customs Clearance Works: Step-by-Step Process for Importers
A complete walkthrough of the customs clearance process from document preparation to cargo release, so you know exactly what happens to your shipment at the border.
Customs Clearance and Trade Compliance: The Complete Shipper's Guide
Master customs clearance, HS codes, incoterms, import documentation, and trade compliance — everything you need for smooth international shipments.
Incoterms FAQ
What is the most common Incoterm for ocean export?
FOB (Free on Board) is widely used for ocean exports — the seller delivers goods on board the vessel at the port of shipment and risk transfers once loaded. Buyers often prefer FOB when they want to control ocean freight and insurance.
When should I use DDP instead of DAP?
Use DDP when the seller arranges and pays import duties and taxes at destination. Use DAP when the buyer handles import clearance and duties — the seller delivers to an agreed place but does not pay destination customs charges.
Does CIF include insurance?
Yes. Under CIF (Cost, Insurance and Freight) the seller must procure minimum marine insurance for the buyer benefit while the goods are in transit. The buyer should verify coverage limits meet their cargo value and risk profile.
Can I use EXW for international shipments?
EXW places maximum obligation on the buyer — including export clearance from the seller country. Many sellers cannot or will not export under EXW; for international trade FCA, FOB, or CIF/CFR are usually more practical.