Incoterms decide who pays freight, who buys insurance, and — most importantly — the exact point where risk for the goods passes from seller to buyer. Pick the wrong one and you either overpay or get stuck clearing customs you did not expect. Here is the version that matters for importing tiles, boards and building materials.
What Incoterms are
Incoterms are standard trade rules published by the International Chamber of Commerce (current edition ICC Incoterms® 2020). They are not law by themselves — they become part of your contract when you write them into a proforma invoice or sales contract. They answer three questions: who arranges transport, who pays for it, and where risk transfers.
EXW — Ex Works
The seller makes the goods available at their factory or warehouse. Everything else is on you: export clearance, loading, freight, insurance, import duties. For a first-time importer this is the riskiest term — you are responsible from the seller's loading dock.
FOB — Free On Board
The seller clears export, delivers the goods onto the vessel at the named port, and pays to that point. Risk transfers when the goods are on board the ship. You then book and pay ocean freight and insurance. FOB is popular with experienced importers who have their own freight forwarder.
CIF — Cost, Insurance and Freight
The seller pays ocean freight and insurance to the destination port, and risk still transfers on board the vessel at the load port. You handle import clearance and final delivery. CIF is convenient if you do not want to negotiate freight yourself.
DDP — Delivered Duty Paid
The seller takes the goods all the way to your door, including import duties and taxes. Risk transfers only when the goods arrive at your premises. This is the simplest for the buyer but the most expensive and not available to every destination.
Comparison at a glance
| Term | Risk transfers at | Freight paid by | Import duty paid by | Best for |
|---|---|---|---|---|
| EXW | Seller's dock | Buyer | Buyer | Buyers with full logistics control |
| FOB | On board vessel | Buyer (from load port) | Buyer | Importers with a freight forwarder |
| CIF | On board vessel | Seller (to port) | Buyer | Importers wanting simple logistics |
| DDP | Your premises | Seller | Seller | First-time / hands-off importers |
Which should you choose?
- First container or new to importing: ask for CIF or DDP. Less to coordinate, fewer surprises at the border.
- You have a trusted freight forwarder: FOB usually saves money because you control the ocean leg.
- Avoid EXW unless you already manage export clearance in the origin country — most small importers do not.
How TANYTE ships
We support EXW, FOB and CIF on all product lines, and DDP to selected destinations. Tell us your experience level and target market and we will recommend the term that keeps your landed cost predictable.
Get a landed-cost quote
Share your destination port and target Incoterm and we will return a transparent quote including freight and duties where applicable.