An Incoterms rule belongs in the sale contract with a named place and version. A forwarder’s service quote then needs to match the agreed responsibilities and explicitly cover any additional work.
Origin delivery: EXW, FCA and FOB
Under EXW, the seller makes goods available at the named place; the buyer assumes substantial collection and export responsibilities. Confirm who can perform export clearance and who loads the collecting vehicle. FCA can provide a more workable export handoff where the seller clears the goods for export. [2]
FOB is a sea or inland-waterway rule with delivery aboard the vessel at the named shipment port. ICC recommends FCA for containerised cargo handed to a carrier before vessel loading. The contract should match the actual handoff instead of using FOB as a generic synonym for origin-only pricing. [1]
Destination delivery: DAP and DDP
Under DAP, the seller arranges delivery at the named destination ready for unloading, while the buyer normally handles import clearance and duties. Under DDP, the seller also assumes import clearance and applicable import charges. In both rules, unloading is generally the buyer’s obligation unless separately agreed. [2]
Before a seller promises DDP into the United States, establish a lawful importer and representation arrangement and verify product and duty treatment. A freight provider’s operational assistance does not automatically make that provider the importer, nor does the Incoterm replace the authorities’ requirements.
Aligning the sale and freight quote
Write the agreed rule as, for example, DAP [named warehouse and address], Incoterms® 2020. Then compare freight quotes with the same origin pickup, export, main carriage, customs, duty and delivery scope. State cargo insurance and contingent charges separately.
For furniture, add appointment, dock access, liftgate, floor unloading and room placement to the service scope as required. Incoterms allocate defined delivery responsibilities and risk; they do not settle product quality, payment terms or title transfer. Keep those matters in the sale contract. [2]
PUBLIC REFERENCES