📦 Incoterms® Who’s Responsible for What? 🚢

“Wait… I thought my supplier was handling that.” 👀 Sound familiar?

Incoterms® (International Commercial Terms) define who’s responsible for what in a trade transaction - costs, risk, transport, insurance, even customs clearance.💡

Here’s a quick cheat sheet for some of the most common terms:

🟨 EXW – Ex Works The buyer does everything. You collect the goods at the seller’s premises and handle it from there - export, transport, insurance, the lot.

🚩 Watch out: This can be risky for inexperienced importers.

🟧 FOB – Free On Board The seller gets the goods onto the ship at the named port. From there, it’s the buyer’s responsibility.✅ Often used in sea freight.

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🟥 DDP – Delivered Duty Paid The seller handles everything - delivery, duties, customs clearance.

✅ Sounds easy? Maybe. But it gives the seller control over the process and costs.

⚠️ The goal of Incoterms is to avoid misunderstandings, clarify roles, and streamline international trade contracts and agreements.

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Pro tip from one of our teachers and International Customs expert Bertrand Rager: Never assume - get the Incoterm agreed in writing and know exactly where your responsibilities start.