Glossary

Incoterms

Standard trade terms that set out who pays for shipping, insurance, and duty, and where responsibility passes from supplier to buyer.

Incoterms are published by the International Chamber of Commerce. Three you'll see often: EXW (ex works), where you collect from the supplier and pay for everything after; FOB (free on board), where the supplier gets goods onto the ship and you pay for the main freight, insurance, and import duty; and DDP (delivered duty paid), where the supplier delivers to you with freight and duty paid. The term you agree changes your landed cost, so know which one is on your quote.

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