Incoterms 2020 for Industrial Buyers: FOB, CIF, DAP, DDP Explained
Understand buyer and seller responsibilities under the ICC Incoterms 2020 rules.
Incoterms® 2020 are the official International Chamber of Commerce (ICC) rules that define buyer and seller responsibilities regarding delivery, risk transfer, and cost allocation.
Key Terms for Industrial Cargo
FOB (Free On Board)
Seller loads the goods onto the vessel. Buyer pays for main freight and insurance. Risk transfers once loaded.
CIF (Cost, Insurance & Freight)
Seller pays freight and minimum insurance to the destination port. Risk transfers when loaded.
DAP (Delivered at Place)
Seller delivers to the buyer's facility but the buyer must handle import customs clearance and duties.
DDP (Delivered Duty Paid)
Maximum seller responsibility. Seller handles all freight, customs, duties, and delivery to the buyer's door.
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