The common terms for apparel
Incoterms are published by the International Chamber of Commerce. The current version is Incoterms 2020.
| Term | Seller’s responsibility | Buyer’s responsibility |
|---|---|---|
| EXW (Ex Works) | Make goods ready at the factory | Everything from collection onwards |
| FCA (Free Carrier) | Deliver to the buyer’s carrier, export-cleared | Main freight, import duties |
| FOB (Free on Board) | Load onto the buyer’s vessel at the port (sea only) | Sea freight, insurance, import duties |
| CIF (Cost, Insurance & Freight) | Sea freight and insurance to destination port (sea only) | Import clearance, duties, delivery |
| DAP (Delivered at Place) | Deliver to your address | Import duties and taxes |
| DDP (Delivered Duty Paid) | Deliver to your address with duties and taxes paid | Unloading |
How to choose
- Small orders by courier: DAP or DDP. You receive the box; with DAP you pay duties on arrival.
- Large orders with your own freight forwarder: FCA or FOB.
- First-time importers who want certainty: DDP, where available, gives a single landed price.
Questions to settle in writing
- Which Incoterm, and which named place (e.g. “FOB Karachi”)?
- Who arranges insurance?
- Who pays import duties and VAT?
- Who is the importer of record?
We state shipping terms clearly in every quote. See shipping from Pakistan.
Frequently asked questions
Which Incoterm is best for a first order?
For small team orders, DAP or DDP by courier is simplest: delivered to your door. For large orders with your own forwarder, FOB or FCA gives you more control over freight costs.
Are Incoterms legally binding?
They become part of the sales contract when written into the quote or invoice, e.g. 'FOB Karachi, Incoterms 2020'.