{"id":6468,"date":"2026-05-09T07:57:13","date_gmt":"2026-05-09T07:57:13","guid":{"rendered":"https:\/\/brf-logistics.com\/?p=6468"},"modified":"2026-05-10T05:14:38","modified_gmt":"2026-05-10T05:14:38","slug":"meaning-and-difference-of-exw-fob-cif-and-ddu","status":"publish","type":"post","link":"https:\/\/brf-logistics.com\/fr\/meaning-and-difference-of-exw-fob-cif-and-ddu\/","title":{"rendered":"Meaning and Difference of EXW, FOB, CIF, and DDP"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

When it comes to international trade<\/strong><\/a>, knowing your Incoterms (International Commercial Terms)<\/a><\/strong> is crucial. These standardized trade rules, published by the International Chamber of Commerce (ICC), clearly define the responsibilities, risks, and costs<\/strong> shared between the buyer and the seller during international shipping.<\/p>

Among the most common Incoterms used in global trade are EXW, FOB, CIF, and DDP<\/strong><\/a>. Each determines who pays for freight, who handles customs, and where the risk transfers.<\/p>

Let\u2019s explore what each term means and how they differ.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

1. What Is EXW (Ex Works)?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

EXW (Ex Works)<\/strong> means the seller makes the goods available at their premises or another named place (factory, warehouse, etc.).
From that point, the buyer is responsible<\/strong> for all transportation costs, export customs clearance, insurance, and delivery to the final destination.<\/p>

Seller\u2019s responsibility:<\/strong> Minimal \u2014 only to prepare and package the goods for pickup.
Buyer\u2019s responsibility:<\/strong> Transportation, export\/import clearance, insurance, and all risks after pickup.<\/p>

Example:<\/strong>
If you buy under EXW terms from China, you\u2019ll need to arrange trucking from the factory, handle export customs, book international freight, and manage import procedures in your country.<\/p>

Best for:<\/strong> Experienced importers who have a strong logistics network in China.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

2. What Is FOB (Free On Board)?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

FOB (Free On Board)<\/strong> is one of the most popular Incoterms for sea freight.
Under FOB, the seller<\/strong> is responsible for delivering the goods to the port of shipment<\/strong>, clearing export customs, and loading the goods onto the vessel.
After loading, risk transfers<\/strong> to the buyer, who then handles ocean freight, insurance, and destination charges.<\/p>

Seller\u2019s responsibility:<\/strong> Inland transport to port, export clearance, and loading onto the ship.
Buyer\u2019s responsibility:<\/strong> Ocean freight, insurance, and import customs at destination.<\/p>

Example:<\/strong>
If you ship from Shanghai to Los Angeles under FOB, the seller handles everything until the goods are on board the ship. After that, the buyer arranges freight and destination handling.<\/p>

Best for:<\/strong> Buyers who want sellers to handle export procedures but control the main freight themselves.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

3. What Is CIF (Cost, Insurance, and Freight)?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

CIF (Cost, Insurance, and Freight)<\/strong> means the seller<\/strong> pays for the cost, insurance, and freight to bring the goods to the destination port<\/strong>.
However, the risk<\/strong> transfers to the buyer once the goods are loaded on the vessel at the port of origin.<\/p>

Seller\u2019s responsibility:<\/strong> Export clearance, ocean freight, and insurance.
Buyer\u2019s responsibility:<\/strong> Import customs, unloading, and inland transport from the destination port.<\/p>

Example:<\/strong>
If the goods are shipped CIF Hamburg, the seller pays shipping and insurance up to Hamburg port, but once loaded on the vessel, any damage or delay risk belongs to the buyer.<\/p>

Best for:<\/strong> Buyers who prefer sellers to handle shipping and insurance arrangements.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

4. What Is DDP (Delivered Duty Paid)?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

DDP (Delivered Duty Paid)<\/strong> means the seller is responsible for delivering the goods to the buyer\u2019s door<\/strong>,<\/a> covering all costs and risks<\/strong>, including import duties and taxes.
It is the most seller-responsible Incoterm.<\/p>

Seller\u2019s responsibilities:<\/strong><\/p>