Incoterms Explained for Indian Exporters

• EXW (Ex Works): the buyer collects from your factory and handles everything, including Indian export clearance
• FCA (Free Carrier): you hand the goods, cleared for export, to the buyer's carrier at an agreed place
• FOB (Free On Board): you clear and load the goods on the vessel at the Indian port; the buyer pays the sea freight
• CFR (Cost and Freight): you also pay the sea freight to the destination port; risk passes to the buyer at loading
• CIF (Cost, Insurance and Freight): like CFR, plus you buy insurance for the buyer
• DAP (Delivered at Place): you deliver to the buyer's address; the buyer pays import duty
• DDP (Delivered Duty Paid): you deliver to the buyer's address and pay the import duty too

FOB and CIF are the most common for Indian sea exports. FOB keeps your job short; CIF lets you control the shipping and often win the order with a delivered price. DAP and DDP are popular with buyers who want no hassle, but you take on more cost and risk, including duty for DDP.

FOB, CFR and CIF are meant for sea freight. For containers and air cargo, FCA, CPT and CIP fit better on paper, though many buyers still ask for FOB or CIF.

If you quote DAP or DDP, you need someone at destination to clear and deliver the goods. PH Logistics India works with agent partners in more than 100 countries, so we can quote and run the whole journey from your factory in Punjab to your buyer's door.