Releasing February 18th
Incoterms for Tech Traders
67% of people in the tech industry don’t understand Incoterms, the universal language that defines shipping responsibilities and the risks that each party is exposed to.
Our latest eBook breaks down:
- What each Incoterm means and how to choose the right one.
- Common Incoterm pain points and solutions for tech shipments.
- How a DDP and compliance service provider minimizes risks.
- Incoterm use cases for tech products.
Submit This Form To Secure a Copy of the eBook
What Are Incoterms?
Incoterms are globally recognized commercial terms that international traders use to define the rules and responsibilities of the buyer and the seller in the international movement of goods.
When used correctly, they ensure smooth shipments with clear terms. However, they’re frequently misunderstood and misapplied, leading to various obstacles. It’s crucial to get Incoterms right for tech shipments to avoid significant delays, financial penalties, and reputational damage.
Hover over an Incoterm below to learn more about its associated risks and responsibilities.
Incoterms for any modes of transport:
EXW
ExWorks
- Seller Responsibilities: Make goods available at origin only.
- Buyer Responsibilities: Loading, export clearance, transport, insurance, import clearance, duties.
- Risks: Maximum buyer risk. Buyer may not legally manage export or compliance.
FCA
Free Carrier
- Seller Responsibilities: Export clearance and delivery to carrier.
- Buyer Responsibilities: Main transport, insurance, import clearance, duties.
- Risks: Risk transfers early. Buyer exposed during main transit.
CPT
Carriage Paid To
- Seller Responsibilities: Export clearance and freight to destination.
- Buyer Responsibilities: Insurance, import clearance, duties.
- Risks: Buyer carries transit risk without insurance included.
CIP
Carriage and Insurance Paid To
- Seller Responsibilities: Export clearance, freight, all-risk insurance.
- Buyer Responsibilities: Import clearance, duties.
- Risks: Risk transfers at carrier handover despite insurance.
DAP
Delivered at Place
- Seller Responsibilities: Transport to destination (not unloaded).
- Buyer Responsibilities: Import clearance, duties, unloading.
- Risks: Customs delays and taxes sit with buyer.
DPU
Delivered at Place Unloaded
- Seller Responsibilities: Transport and unloading at destination.
- Buyer Responsibilities: Import clearance, duties.
- Risks: Buyer still exposed at customs stage.
DDP
Delivered Duty Paid
- Seller Responsibilities: Transport, customs, duties, taxes, compliance, delivery.
- Buyer Responsibilities: Receive goods only.
- Risks: Minimal buyer risk. Seller must be legally compliant.
Incoterms for sea and inland waterway transport:
FAS
Free Alongside Ship
- Seller Responsibilities: Export clearance and delivery alongside vessel.
- Buyer Responsibilities: Loading, ocean freight, insurance, import clearance, duties.
- Risks: Buyer assumes risk before loading.
FOB
Free On Board
- Seller Responsibilities: Export clearance and loading onto vessel.
- Buyer Responsibilities: Ocean freight, insurance, import clearance, duties.
- Risks: Sea-only term. High risk if misused for air freight.
CFR
Cost and Freight
- Seller Responsibilities: Export clearance and ocean freight.
- Buyer Responsibilities: Insurance, import clearance, duties.
- Risks: Buyer bears transit risk without insurance.
CIF
Cost, Insurance and Freight
- Seller Responsibilities: Export clearance, ocean freight, basic insurance.
- Buyer Responsibilities: Import clearance, duties.
- Risks: Insurance often insufficient for high-value tech.
What is the TecEx Delivered Duty paid (DDP) Solution?
Under the Incoterm DDP, the buyer assumes almost no responsibilities and minimal risk, while the seller handles all responsibilities. With TecEx as your DDP service provider, the importer, buyer, or end user will still have a DDP experience, while the exporter or seller’s role is essentially EXW. We assume all shipping risks and responsibilities from end to end, while you maintain control and visibility over the shipment.
Unpack Incoterms and Tech Imports
FAQs | Incoterms and Tech Shipments
Are You Looking for a Tailored Solution?
If you are ready to start shipping immediately, submit this form, and an expert will get in touch to help you navigate Incoterms confidently. Our bespoke solutions enable you to take control of the risks and responsibilities in your supply chain, or pass them entirely onto us.
