Incoterms are the International Chamber of Commerce rules that divide the tasks, costs and risks of a delivery between seller and buyer. Choosing the right one avoids disputes later. These are the five we quote most often for brass components.
| Term | Seller handles | Risk passes to buyer |
|---|---|---|
| EXW — Ex Works | Goods ready at seller's premises | When goods are made available at the premises |
| FOB — Free on Board | Export clearance and loading on the vessel | When goods are on board at the port of shipment |
| CFR — Cost and Freight | FOB plus sea freight to the destination port | When goods are on board at the port of shipment |
| CIF — Cost, Insurance and Freight | CFR plus minimum cargo insurance | When goods are on board at the port of shipment |
| DAP — Delivered at Place | Carriage to the named place, ready for unloading | At the named place of delivery |
A common point of confusion
Under CFR and CIF the seller pays for the sea freight, but risk still passes to the buyer when the goods are loaded on the vessel at origin. Insurance under CIF is a minimum level; buyers who want wider cover often arrange their own.
Containers and the newer terms
FOB, CFR and CIF are written for goods loaded onto a ship. Because containers are normally handed to the carrier at a terminal before loading, the ICC suggests FCA, CPT or CIP for containerised cargo. Many buyers still prefer the familiar sea terms, and both approaches work if everyone is clear.
Which suits you?
- You have a freight forwarder and want control of shipping: FOB or FCA
- You want a landed freight price to your port: CFR or CIF
- You want delivery to your door with import clearance on your side: DAP
See how we handle each stage on our process page, or ask for a quotation on the term you prefer.
Have a drawing or specification in mind? Send it to our export desk and we will respond with a clear quotation.