Incoterms Explained for Industrial Equipment Buyers

EXW, FOB, CIF or DAP? How the choice of Incoterm shifts cost, risk and responsibility in international supply.

Incoterms Explained for Industrial Equipment Buyers

Incoterms define who arranges and pays for each stage of transport, and when risk passes from seller to buyer. Choosing the right term avoids unexpected costs at the destination.

EXW and FOB

Under EXW the buyer handles almost everything from the supplier’s premises. FOB moves export clearance and loading onto the seller, with risk passing once goods are on board.

CIF and DAP

CIF adds main carriage and minimum insurance to the seller’s scope. DAP extends delivery to a named destination, leaving import clearance and duties to the buyer.

What to compare

When evaluating offers on different Incoterms, convert them to a landed cost so the comparison is like for like.

Have a sourcing question?

Our team can help you specify, source and compare products for your project.

More Insights

Have a product requirement?

Share your specifications and quantities. Our team will review your request and come back with sourcing options and a quotation.