International Trade Terms

What is The Difference Between FOB & CIF?
2025-03-19
FOB: Buyer manages “everything after loading” (freight, insurance, risk). CIF: Seller covers “shipping and insurance” to the destination port, but risk transfers at the port of shipment.
What is The Difference Between EXW and DDP?
2025-03-19
EXW: The seller simply delivers the goods at their premises, and the buyer is responsible for all risks and costs. DDP: The seller offers a comprehensive service, taking care of everything from the factory to the buyer's specified destination, including import clearance.
What is The Difference Between EXW and DDU?
2025-03-14
EXW: Seller "hands off" goods at their premises, with the buyer assuming all risks and costs. DDU: Seller delivers goods to the destination but leaves import customs and taxes to the buyer (similar to DAP but an older term).
What is The Difference Between EXW and DAP?
2025-03-14
EXW requires the seller to only deliver goods at their premises, with the buyer assuming all costs and risks. DAP obligates the seller to transport goods to the destination (any mode), transferring risk upon delivery, while the buyer handles import customs.
What is The Difference Between EXW and CIF?
2025-03-14
Under EXW, the seller just delivers the goods, and the buyer shoulders all costs and risks. In contrast, under CIF, the seller is responsible for transporting the goods to the destination port and arranging insurance. The risk is transferred at the port of shipment, and the buyer manages the import processes.
What is The Difference Between EXW and FOB?
2025-03-13
EXW requires sellers to deliver goods at their premises, with buyers handling all logistics, risks, and costs (export/import). FOB obligates sellers to load goods onto a ship at the port of shipment, covering pre-shipment costs/risk; buyers manage post-shipment logistics and import procedures. FOB applies only to sea/inland water transport.
What is DDU?
2025-03-13
DDU (Delivered Duty Unpaid) means the seller is responsible for delivering goods to the buyer's specified destination (via any mode of transport) but does not handle import customs clearance or pay duties/taxes, which are the buyer's responsibility; risk transfers upon delivery at the destination
What is CIF?
2025-03-13
CIF is an international trade term where the seller pays freight, insurance, and costs to deliver goods to the buyer’s specified port of destination. However, risk transfers to the buyer when goods cross the ship’s rail at the port of shipment.
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