Incoterms 2020 explained for first-time importers

Incoterms decide who pays for freight and insurance, and where the risk passes from seller to buyer.

The four you'll see most - EXW: you collect from the factory and handle everything. - FOB: the seller clears export and loads the vessel; you pay ocean freight. - CIF: the seller pays freight and minimum insurance to your port. - DAP: the seller delivers to your door, you handle import duties.

Ask suppliers to quote the same Incoterm so you can compare prices fairly.