Incoterms are the standardised international rules that define the responsibilities of buyer and seller in a shipment — who arranges and pays for transport, insurance and customs, and where risk passes from one party to the other. Choosing the right one shapes your cost, your workload and your exposure.
EXW — Ex Works
The buyer takes on almost everything, collecting the goods at the seller's premises and handling export, transport, insurance and import. Maximum control, maximum responsibility. It suits experienced buyers with strong logistics capability.
FOB — Free On Board
The seller delivers the goods onto the vessel and handles export clearance; the buyer takes over cost and risk from that point. A very common, balanced term for sea freight — the buyer controls the main journey without handling origin logistics.
CFR / CIF — Cost and Freight / plus Insurance
The seller arranges and pays freight to the destination port; CIF adds insurance. The buyer handles import clearance and onward delivery. Convenient for buyers who want the seller to manage the sea leg.
DAP — Delivered At Place
The seller delivers to a named destination, ready for unloading; the buyer handles import clearance. More hands-off for the buyer than CIF.
DDP — Delivered Duty Paid
The seller delivers to the destination with duties paid — the most hands-off term for the buyer, who simply receives the goods. Convenient; the buyer should still understand exactly what is included.
How to choose
Ask three questions. How much of the journey do I want to manage? How much logistics capability do I have at each end? Where do I want risk to pass? If you want minimal involvement, DDP or DAP; if you want control and can handle it, FOB or EXW; CIF and CFR sit between. When unsure, a knowledgeable partner will advise the term that fits your situation — and LinkWin quotes and executes under every major Incoterm.