Imports & Exports · 6 min read
Incoterms 2020 Explained for Agro-Commodity Buyers
FOB, CFR, CIF, DDP — what each term means for your cost, risk and paperwork when buying food commodities.
Why incoterms matter
Incoterms decide who pays for freight and insurance, and the exact point where risk moves from seller to buyer. Getting them wrong is the most common source of surprise costs in commodity trade.
FOB — Free On Board
The seller delivers goods loaded on the vessel at the Indian port. You book and pay the ocean freight and insurance. Best for buyers with their own freight forwarder.
CFR and CIF
With CFR the seller also pays freight to your port; CIF adds minimum marine insurance. Risk still passes to you once goods are on board in India, so check the insurance cover.
DDP — Delivered Duty Paid
The seller handles everything to your door including import duty. Convenient for small orders and samples, but usually the most expensive option for container loads.
Ready to source from India?