Under EXW, the seller is only responsible for making the goods available at their factory or warehouse. The buyer bears all costs and risks from that point onward, including inland transportation, export procedures, shipping, insurance, and customs clearance.
Best suited for importers who have their own freight forwarder managing the entire logistics process.
The seller is responsible for all costs until the goods are loaded onto the vessel at the port of origin. Once the goods are on board, responsibility transfers to the buyer, who covers ocean freight, insurance, and customs clearance at the destination.
FOB is one of the most commonly used shipping terms for sea freight.
The seller pays for the cost of the goods, ocean freight, and insurance up to the destination port. However, the buyer is responsible for customs clearance, import duties, taxes, and inland transportation after arrival.
Ideal for importers who prefer the seller to arrange shipping and insurance.
Under DDP, the seller assumes full responsibility for delivering the goods to the buyer’s specified location, including shipping, insurance, customs clearance, duties, and taxes.
This is the most convenient option for buyers, as they receive the goods without managing the shipping or customs process themselves.
