Short answer: Incoterms define who pays freight and insurance and where risk passes from seller to buyer. EXW leaves everything to the buyer; FOB and CIF shift risk at the ship’s rail with different cost splits; DDP delivers duty-paid to your door. Choose the term that matches your logistics capability and cash flow.
At a Glance
Why Incoterms Matter to Buyers
The term changes your landed cost, insurance responsibility and customs exposure — it should be agreed alongside packing in our Export Packing Guide. A wrong assumption turns a cheap FOB quote into an expensive surprise at the port.
EXW and FOB
EXW (Ex Works) means you collect from the seller’s gate and own all risk and cost from there — best if you have your own forwarder. FOB (Free on Board) has the seller load and clear for export; risk passes when goods are on board the vessel. Both leave ocean freight to the buyer.
CIF, CFR and DAP
CIF and CFR have the seller pay ocean freight (CIF adds insurance); risk still passes on board. DAP delivers to your destination without duty cleared. These suit buyers without a strong freight desk but cost more in the unit price.
DDP and Customs
DDP (Delivered Duty Paid) is the most seller-responsible term — goods arrive at your door, duty paid. It is simplest for the buyer but depends on the seller handling your import rules, so confirm classification for products like those from our Stainless Supplier or Copper Supplier.
Get a Quote
Tell HXSCO your requirements and we will respond with a competitive quote and lead time.
Frequently Asked Questions
Seller loads and exports; risk passes on board the vessel; you pay ocean freight.
The seller insures during ocean transit under CIF.
Lower unit price, but you own all logistics and risk from the gate.
Delivered duty-paid to your door — most seller-responsible.
Yes — it shifts freight, insurance and duty between parties.
Clarify Terms with HXSCO
HXSCO quotes under the Incoterm you prefer (EXW, FOB, CIF, CFR or DDP) with clear packing and documentation. Tell us your term when requesting a quote.