Who pays freight, who bears risks and where responsibility transfers — Incoterms 2020 reference
EXW
Minimum for the seller: goods at their warehouse — everything else is yours (loading, freight, customs, risks). Cheap for the seller, expensive and risky for you.
FCA
Seller loads onto your carrier in their country — export customs on them, the rest is yours. The most common sensible basis for imports.
FOB
Sea: seller delivers on board — risk transfers to you at the port of departure. Freight and insurance are yours.
CIF
Seller pays freight and insurance to your port, but risk transfers at loading. You handle customs clearance and delivery from the port.
DAP
Seller ships to your address, risk until unloading is theirs. Your share — only import duties and VAT.
DDP
Maximum for the seller: everything including customs to your door. Convenient but pricey — the seller builds risks into the price.
Choosing a term means choosing who organizes and insures transport. For a first import — FCA/CIF (seller handles export); EXW is risky for the buyer, negotiate FCA. Full list: E, F, C, D groups — here are the 6 most used.