Import guide
EXW, FOB, CFR, CIF and DAP explained
Delivery terms decide who pays for each stage of the trip and when the risk moves to you. These summaries follow Incoterms 2020; the contract states the exact terms of each order.
- Direct from factories
- Checked before shipping
- Export handled
Who handles what
| EXW | FOB | CFR | CIF | DAP | |
|---|---|---|---|---|---|
| Export clearance | Buyer | Seller | Seller | Seller | Seller |
| Main sea freight | Buyer | Buyer | Seller | Seller | Seller |
| Cargo insurance | Not required | Not required | Not required | Seller | Not required |
| Import clearance | Buyer | Buyer | Buyer | Buyer | Buyer |
| Risk passes to buyer | Seller's premises | On board at origin | On board at origin | On board at origin | Named place |
EXW: Ex Works
The seller makes the goods available at its premises. The buyer arranges everything after that, including export.
FOB: Free On Board
The seller clears the goods for export and loads them on the ship at the port of shipment. Risk passes to the buyer once they are on board.
CFR: Cost and Freight
The seller pays the sea freight to the destination port, but risk still passes when the goods are on board at the port of shipment.
CIF: Cost, Insurance and Freight
Like CFR, and the seller also buys cargo insurance for the buyer. Default cover is minimal, so ask if you need more.
DAP: Delivered At Place
The seller delivers to the named place, ready for unloading. The buyer handles import clearance and duties.
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