In international sales, the three letters written next to the price (FOB, CIF, EXW) define who is responsible for what. Incoterms 2020 sets when goods pass from seller to buyer, who pays freight and insurance, and who handles customs.
FOB
The seller loads goods on the vessel at the port of loading and clears export customs. Risk passes to the buyer once loaded. The buyer arranges freight and marine insurance. It suits buyers with their own freight contracts who want to control cost.
CIF
The seller pays freight and minimum insurance to the destination port; risk still passes at loading. A single price line is convenient, but when freight rises the seller's offer rises too.
EXW and DAP
Under EXW the buyer collects at the seller's warehouse and handles everything including export clearance. Under DAP the seller delivers to the named place and the buyer clears import customs.
Always name the port in the offer (for example FOB Mersin) and clarify insurance cover. State your Incoterms preference in our inquiry form and we will quote both options.