Export Delivery Terms
Summary
In international trade, export methods such as “door to door” are defined under Incoterms (International Commercial Terms). These rules determine the responsibilities, risks, and cost distribution between the buyer and the seller.
- EXW → Buyer handles everything
- FOB / CIF → Common for sea freight
- DAP → Delivery to destination, excluding import duties
- DDP (Door to Door) → Full-service delivery
🚛 EXW (Ex Works)
The seller makes the goods available at their premises.
All transportation, customs clearance, and risks are borne by the buyer.
🚚 FCA (Free Carrier)
The seller delivers the goods to a carrier specified by the buyer.
Export customs clearance is handled by the seller; all further responsibilities belong to the buyer.
🚢 FOB (Free On Board) *
Used only for sea freight.
The seller loads the goods onto the vessel.
Risk transfers to the buyer once the goods are on board.
⚓ CFR (Cost and Freight) *
The seller pays for transportation to the destination port.
However, risk transfers to the buyer once the goods are loaded onto the vessel.
🛡️ CIF (Cost, Insurance and Freight)
Same as CFR, but the seller also provides insurance coverage for the shipment.
🚛 DAP (Delivered At Place) *
The seller delivers the goods to a specified destination.
Import duties and customs clearance are the responsibility of the buyer.
🏠 DDP (Delivered Duty Paid)
The seller assumes full responsibility, including:
- Transportation
- Insurance
- Customs clearance
- Import duties and taxes
Goods are delivered directly to the buyer’s location.
This method is commonly referred to as “Door to Door Delivery.”
