Logistics

Incoterms 2020 for food importers: EXW, FOB, CIF, DAP, DDP explained

The wrong Incoterm on a pro-forma can turn a profitable pallet into a loss the moment a container is delayed at port. This guide translates ICC Incoterms 2020 into the decisions food buyers actually make.

EXW (Ex Works)

Buyer collects at seller's warehouse. Cheapest quoted price, all risk and paperwork on the buyer. Only use if you have a trusted freight forwarder in Spain.

FOB (Free On Board)

Seller clears export and loads at named port (Algeciras, Valencia). Risk transfers at ship's rail. Standard for container buyers who own their sea freight contract.

CIF (Cost, Insurance & Freight)

Seller pays sea freight and minimum insurance to destination port. Buyer handles import clearance. Common for first-time importers.

DAP (Delivered at Place)

Seller delivers to a named place in the buyer's country. Buyer clears customs and pays import VAT / duty. Preferred for EU-EU shipments where customs is trivial.

DDP (Delivered Duty Paid)

Seller pays everything up to the buyer's door, including import VAT. Simplest for the buyer, most expensive quote. NostraMareFoods offers DDP into all EU-27 addresses.

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