Incoterms, Plainly Explained for First-Time Importers

Incoterms describe who is responsible for what, and at which point, as goods move from factory to destination. Getting them right avoids disputes and unexpected costs. Here are the three you are most likely to encounter.

FOB – Free On Board

The supplier is responsible for costs and risk up to the point the goods are loaded onto the shipping vessel. After that, the buyer takes over freight, insurance and import costs.

CIF – Cost, Insurance and Freight

The supplier arranges and pays for freight and insurance to the destination port. Import duties and onward delivery from the port remain the buyer’s responsibility.

DDP – Delivered Duty Paid

The supplier takes responsibility for the whole journey, including import duties, right through to an agreed delivery point. The buyer’s involvement is minimal, but pricing reflects that.

Why this matters

Ebor Trading uses these terms accurately in every quotation, and explains plainly what each one means for your order, so there are no surprises once goods are in transit.

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