What are export delivery terms?
The buyer asks, “Is your price FOB or CIF?” If the answer is unclear, either the price comes out wrong or, when something goes wrong in transit, a who-pays-and-who-bears-the-risk argument starts. 🚢
Delivery terms are defined by the internationally accepted Incoterms rules: where do costs and risk change hands?
Short answer: the delivery term is an integral part of the quote; one abbreviation decides which costs and risks sit with whom. For a first export, pick a rule balancing control and burden for the seller. 📦
Note: foreign trade regulations, procedures and support schemes change; get current information from your customs broker, your bank and the Ministry of Trade.
What does a delivery term decide?
Four questions. ❓
Four common rule groups
BU BÖLÜMÜN ÖZETİ
- EXW — ex works
- FOB / FCA — handed to the carrier
- CIF / CIP — freight and insurance included
- DAP / DDP — delivered at destination
The general logic. 🗂️
EXW — ex works
Goods handed over at your premises; most of the burden is the buyer’s. Practical for new exporters but can cause issues in some procedures. 🏭
FOB / FCA — handed to the carrier
Goods handed to the carrier in your country; export formalities are yours. 🚛
CIF / CIP — freight and insurance included
You arrange carriage and insurance; risk still passes early. 🚢
DAP / DDP — delivered at destination
Goods delivered in the buyer’s country; cost and risk are largely yours. 🏠
Choosing
BU BÖLÜMÜN ÖZETİ
- Experience
- Buyer expectations
- Transport mode
- Control
Four principles. ⚖️
Experience
In a first export, taking on customs in the buyer’s country is risky. 🧭
Buyer expectations
Large buyers often require a certain rule. 🤝
Transport mode
Suitable rules differ for sea, road, air and containers. 🚚
Control
If you arrange freight, time and price are in your hands. 🎛️
Writing it correctly
BU BÖLÜMÜN ÖZETİ
- Rule + place
- Version
- Same on quote and invoice
- Insurance decision
Four rules. ✍️
Rule + place
Like “FOB Istanbul”; without a place the rule is incomplete. 📍
Version
State the Incoterms version; misunderstanding is avoided. 🔢
Same on quote and invoice
Quote, contract, invoice; consistent. 📄
Insurance decision
Even if the rule doesn’t require insurance, consider it by goods value. 🛡️
Four common mistakes
BU BÖLÜMÜN ÖZETİ
- Abbreviation without a place
- FOB habits for containers
- Underestimating DDP
- Leaving costs out of the price
All four breed disputes. 🚧
Abbreviation without a place
Writing only “CIF” leaves the port unclear. ❓
FOB habits for containers
A rule unsuited to the transport mode blurs risk transfer; ask your broker. 📦
Underestimating DDP
Taxes and formalities in the buyer’s country bring surprise costs. 💸
Leaving costs out of the price
If freight and insurance aren’t reflected in the price for the chosen rule, you book a loss. 🧮
What should I do today?
BU BÖLÜMÜN ÖZETİ
- Step 1: check current quotes
- Step 2: choose a default rule
- Step 3: price by the rule
- If you want help
Three steps, one hour. 🪜
Step 1: check current quotes
Are the delivery term and place written? 📄
Step 2: choose a default rule
By your experience and transport mode; together with your broker. 🤝
Step 3: price by the rule
Are the rule’s included costs in the price? 🧮
If you want help
Let us clarify your delivery terms together: use the consult your expert form. For your current setup see the digital audit; the bigger picture sits on the foreign trade consultancy page. 🎯
Related reading from the archive: purchasing process · warehouse counts.
📝 Notes From the Field
On its first export a firm wrote only “CIF” on its quote, without a port; the buyer expected delivery to an inland warehouse and an extra freight dispute followed. Later quotes stated the rule, place and Incoterms version, and prices were recalculated with the rule’s included costs. No delivery disputes happened again.
📖 Short Glossary
Incoterms: international delivery rules published by the ICC. Freight: the carriage charge. Risk transfer: the point at which damage risk passes to the buyer. Named place: the place written with the rule.
⚡ Quick Summary
The delivery term decides costs, risk, documents and price content. 🚢 EXW, FOB/FCA, CIF/CIP and DAP/DDP are the commonest rule groups. Choose by experience, buyer expectations, transport mode and control. Write the rule with place and version, consistently on quote and invoice. Confirm the final choice with your customs broker.
🎯 Next Step
Let us clarify your delivery terms: use the consult your expert form. Payment sits in the payment methods guide; for your setup see the digital audit.
Frequently Asked Questions
Sık Sorulan Sorular
Freight, insurance, customs; which item is whose? 💰
If goods are damaged, who bears it? ⚠️
Export and import formalities; shared responsibility. 📄
Which costs does the quoted figure cover? See the export quote guide. 🏷️
It depends on experience, product and transport mode. Rules that don’t put the buyer’s-country customs burden on you are generally less risky; decide with your broker.
Only some rules oblige the seller to insure. For others, insurance should still be considered by goods value.
They don’t set the payment method, but who holds documents and when risk passes affect payment security.