100 Incoterms quick tips

100 Incoterms Quick Tips


Many trade deals fail because of one thing: misunderstood Incoterms.

Without the right knowledge:

❌ Trust breaks down
❌ Shipments are delayed
❌ Costs fall on the wrong party
❌ Disputes arise unnecessarily
❌ Risks are transferred too soon
❌ Customs responsibilities get blurred

But when you master Incoterms:

✅ Disputes are avoided
✅ Deals close smoothly
✅ Deliveries happen on time
✅ Costs are clearly allocated
✅ Teams operate with confidence
✅ Risks transfer at the right time
✅ Customs roles are straightforward

Here is what you will get in this 100 Incoterms Quick Tips:

Risk Transfer

• When does risk transfer under EXW?
Risk transfers to the buyer at the seller’s premises.

• When does risk transfer under FOB?
The buyer takes on the risk once goods are loaded onto the vessel.

• Under CIF, when does the seller’s risk end?
The seller’s risk ends once the goods are loaded on board, but they provide insurance for the buyer.


Cost Allocation

• Who pays for export customs under EXW?
The buyer handles all export costs and duties.

• Under CPT, who pays for freight charges?
The seller pays freight costs to the named destination.

• Who provides insurance in CIF?
The seller provides minimum insurance coverage until the destination port.


Documentation and Customs Responsibilities

• Who handles export clearance under DDP?
The seller manages both export and import customs.

• Under FAS, who provides shipping documents?
The seller supplies documents, including the invoice.

• Who is responsible for import customs under DAP?
The buyer handles import clearance and costs.


Delivery and Transportation Obligations

• Under FOB, who arranges transportation?
The buyer arranges shipping from the port of departure.

• Who unloads goods under DPU?
The seller unloads goods at the named destination.

• Under FCA, who is responsible for loading?
The seller loads goods onto the buyer’s carrier.