Incoterms Selection Checklist

Buyers, sellers, traders, and operations teams · Before accepting, issuing, or comparing a trade quote

Risk warnings

Do not accept an Incoterm code until the named place, cost scope, risk transfer, document owners, insurance, and customs responsibility are written into the quote or PO.

Record the exact Incoterm rule, Incoterms version, and named place or port; the code alone is not enough.
Spell out whether the quote includes export handling, main freight, insurance, destination handling, customs clearance, duties, taxes, and inland delivery.
Separate cost responsibility from risk transfer by writing where risk passes and who pays each charge before and after that point.
Assign document ownership for commercial invoice, packing list, origin documents, export declaration, transport document, insurance certificate, and import documents.

Confirm the seller can actually perform any export clearance, origin loading, freight booking, insurance, or destination work the Incoterm gives them.
Confirm the buyer can manage freight, import clearance, importer-of-record obligations, licenses, duty/tax payment, and inland delivery when the Incoterm leaves those with the buyer.
Decide who needs freight control, carrier visibility, and booking authority, especially for urgent, high-value, refrigerated, or delay-sensitive cargo.
Set the insurance owner and coverage level; do not rely on CIF-style minimum coverage if loss handling, claims access, or insured value is inadequate.

Challenge EXW when the buyer cannot control origin pickup, loading, export clearance, or local compliance in the seller country.
Challenge FOB or CIF when container loading, terminal handover, destination charges, insurance control, or arrival-cost exposure is unclear.
Challenge DAP or DDP when destination clearance, duties, taxes, importer registration, permits, or seller local capability are uncertain.
Escalate before accepting the term if the named place is missing, the quote uses informal language, responsibilities conflict across documents, or no one clearly owns customs, tax, insurance, or delivery risk.