Incoterms Guide
Incoterms (International Commercial Terms) are internationally recognized rules that define the responsibilities of buyers and sellers in global trade.They clarify who is responsible for transportation, insurance, export clearance, import clearance, and delivery of goods.
Understanding Incoterms helps businesses avoid misunderstandings and ensures smooth coordination between suppliers, buyers, and logistics providers. KokaWing Cargo works with clients and suppliers to ensure shipments are handled correctly according to the agreed Incoterms.
Incoterms (International Commercial Terms) define who is responsible for transportation, insurance, and customs clearance between buyer and seller. Understanding Incoterms helps avoid disputes and ensures smooth coordination across your supply chain.
Common Shipping Incoterms Explained
| Term | Stands For | Seller Handles | Buyer Handles |
| EXW | Ex-Works | Goods ready at factory | All transport & customs |
| FOB | Free on Board | Export & loading on vessel | Freight & import |
| CIF | Cost, Insurance & Freight | Export, freight, insurance | Import & delivery |
| CFR | Cost & Freight | Export, sea freight to destination port | Insurance, import, delivery |
| DAP | Delivered at Place | Export, freight, delivery to destination | Import clearance |
| DDP | Delivered Duty Paid | Full logistics & duties | Receive goods |
Common Shipping Incoterms Explained
| Incoterm | Stands For | Seller Handles | Buyer Handles |
|---|---|---|---|
| EXW | Ex-Works | Goods available at factory | All transport & customs |
| FOB | Free on Board | Export & loading on vessel | Freight & import |
| CIF | Cost, Insurance & Freight | Export, freight, insurance | Import & delivery |
| CFR | Cost & Freight | Export, sea freight to destination port | Insurance, import, delivery |
| DAP | Delivered at Place | Export, freight, delivery to destination | Import clearance |
| DDP | Delivery Duty Paid | Full logistics & duties | Receive goods |