Incoterm defines cost, risk and responsibility in your import.
Before quoting international freight, your company must know where supplier and importer responsibilities begin and end.
Key points
Why Incoterm changes the operation
Before quoting or closing the purchase, validate the factors that most affect cost, timing and predictability.
Responsibility
Defines who hires transport, insurance and delivery at each stage.
Cost
A product price may look lower while transferring logistics costs to the importer.
Risk
Risk transfer changes according to the negotiated term.
Practical guide
What Incoterms are
Incoterms are international rules that define responsibilities between buyer and seller in foreign trade. They affect pickup, freight, insurance, clearance, delivery, cost and risk.
In imports, understanding Incoterm avoids comparing different offers as if they were equal. EXW, FOB or CIF can transfer very different costs and responsibilities to the importer.
Step by step
Common import Incoterms
EXW
The importer assumes much of the operation from origin, including pickup and export steps when feasible.
FOB/FCA
The supplier delivers at an agreed origin point; the importer often hires international freight.
CFR/CIF
The supplier hires main freight; CIF includes insurance, but destination costs still need review.
DAP
The seller carries goods to an agreed place, while import duties and clearance may remain with the buyer.
FAQ
Incoterms FAQ
Is FOB always better?
No. FOB can give control to the importer, but it depends on origin, supplier, volume and coordination capacity.
Does CIF include all costs?
No. CIF includes freight and insurance to the defined destination, but local costs, duties and clearance need separate review.
Can I change Incoterm later?
It may be possible, but it affects price, documents, responsibility and logistics. Define it before purchase.
Next step
Want to turn this guide into a real quote?
Send origin, destination, cargo, Incoterm and timing. Lima Cargo organizes the route, cost and document review.