Incoterms for stainless export: FOB, CIF, DDP and EXW
FOB has the buyer arrange shipping, CIF includes freight and insurance, DDP puts duties on the seller, EXW is ex-works. Choose by customer and risk preference.
Stainless export quotations commonly use Incoterms. The key difference is where cost and risk transfer:
• EXW (ex works): buyer bears all costs and risk from the factory; minimum seller obligation; suits buyers with their own forwarder.
• FOB (free on board): seller handles export clearance and pre-shipment costs; risk transfers when goods are on board; most common.
• CIF (cost, insurance, freight): seller pays ocean freight and insurance to the destination port, but risk still transfers at shipment; used when the buyer wants a landed-cost quote.
• CFR: like CIF without insurance.
• DDP (delivered duty paid): seller bears all costs, duties and risk to destination — maximum seller risk; suits small lots or turnkey customer requests.
Guidance:
1) First cooperation or larger value: prefer FOB with L/C or T/T for clear risk.
2) Buyer requesting landed cost: CIF/CFR — check insurance coverage and destination charges.
3) DDP must include import duty, clearance and last-mile costs to avoid a loss-making quote.
4) Quote clearly: Incoterms version (2020), port of loading/destination, insurance included or not, payment terms.
Wrong terms cause cost disputes — confirm the delivery responsibility boundary before quoting.
