1Understanding Incoterms (Buyer Perspective)
Incoterms define who pays for shipping, insurance, and customs.
| Incoterm | Full Name | Buyer Pays For | Risk Transfers At |
|---|---|---|---|
| EXW | Ex Works | Everything | Supplier's warehouse |
| FOB | Free on Board | Ocean freight, insurance, customs | Once loaded on vessel |
| CIF | Cost, Insurance, Freight | Destination customs only | Destination port |
| DDP | Delivered Duty Paid | Nothing | Your doorstep |
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