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Introduction to Common Incoterms

We adopt standard ICC Incoterms® rules to clarify division of costs, risks and responsibilities between buyers and sellers, ensuring transparent cooperation.

EXW (Ex Works)

Goods are ready for pickup at the seller’s factory or warehouse. Seller bears no loading, shipping or export formalities.

Buyer’s Responsibilities:

Arrange all loading, domestic transport, export customs, international freight, import clearance and final delivery. Take full risk throughout the whole transit.

FOB (Free On Board)

Seller completes export customs and delivers goods onboard the vessel at origin port; risk transfers to buyer after loading.

Buyer’s Responsibilities:

Book sea freight, purchase cargo insurance, handle destination customs clearance and local inland delivery. Bear all risks after cargo is loaded on ship.

CFR (Cost and Freight)

Seller covers product cost plus ocean freight to destination port. Risk transfers to buyer once goods are loaded on board. Marine insurance is not included.

Buyer’s Responsibilities:

Purchase transit insurance, complete import customs clearance and pay local delivery fees at destination.

CIF (Cost, Insurance and Freight)

On the basis of CFR, seller additionally covers basic marine insurance till destination port. Risk transfers after loading onto vessel.

Buyer’s Responsibilities:

Complete import customs clearance and cover inland delivery expenses at the receiving country.

DDU (Delivered Duty Unpaid)

Seller delivers goods to the designated overseas address and covers all transport risks and fees except import duties and taxes.

Buyer’s Responsibilities:

Undertake import customs procedures and pay all import tariffs, VAT and relevant import taxes.

DDP (Delivered Duty Paid)

All-inclusive door-to-door service. Seller handles export & import customs, all transport, and pays all import duties and taxes until goods arrive at buyer’s address.

Buyer’s Responsibilities:

Only receive goods at the agreed delivery location, no customs or tax procedures needed.

Extra Tip

Our logistics team can tailor shipment solutions under any Incoterm and offer transparent cost breakdowns for your quotation.

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