If you're new to exporting, the word "Incoterms" might sound complicated. But don’t worry — we’re here to make them simple. These are global trade terms that define who handles the cost, risk, and responsibility at each shipping stage.
1. What Are Incoterms?
Incoterms (short for "International Commercial Terms") are 3-letter codes used in trade contracts like:
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FOB – Free On Board
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CIF – Cost, Insurance & Freight
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EXW – Ex Works
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DDP – Delivered Duty Paid
2. Most Common for Food Exporters
| Term | What It Means | Best For |
|---|---|---|
| FOB | You deliver to the port; buyer handles rest | Balanced risk |
| CIF | You cover shipping & insurance to buyer’s port | Trusted markets |
| DDP | You deliver to buyer’s door | High control but high responsibility |
| EXW | Buyer collects from your warehouse | Low risk for seller |
3. Choosing the Right Term
The term you choose affects your pricing, paperwork, and risk. If you’re new, start with FOB or CIF — they’re most commonly used in the food industry.
Conclusion:
Knowing your Incoterms makes your export deals clearer, fairer, and more professional. At Global Trade Solution, we help you choose the right term for your product and region.
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