Incoterms Selection Checklist
Buyers, sellers, traders, and operations teams · Before accepting or issuing a trade quote.
- What this checks
- Cost scope, risk-transfer point, clearance obligations, and insurance responsibility.
- When to use
- Before accepting or issuing a trade quote.
- Decision it protects
- Accepting an Incoterm before cost scope, risk transfer, and document ownership are written down.
How to use: Click evidence chips as you verify them. Tick the row when the control is satisfied.
Term, place, and cost scope
The code alone is not enough — the version and named place/port must appear together on the quote or PO.
Every leg of cost is either explicitly included or explicitly excluded in writing.
Write where risk passes, and who pays for each charge before and after that point.
Capability, control, and insurance
Especially important for urgent, high-value, refrigerated, or delay-sensitive cargo.
Do not rely on CIF minimum cover if loss handling, claims access, or insured value is inadequate.
Hidden-risk review and escalation
Named place missing, informal quote language, or conflicting responsibilities across documents.
Incoterms risk comparison
The single thing to challenge before accepting each term.
| Term | Buyer controls | Seller controls | Main thing to challenge |
|---|---|---|---|
| EXW | Export clearance, origin pickup, loading, freight, insurance, import, delivery. | Making goods available at their premises. | Can the buyer legally act as exporter in the seller country and arrange origin loading? |
| FOB | Main freight, insurance, destination handling, import, delivery. | Export clearance, origin handling, loading on vessel at named port. | Is the named port explicit, and are origin terminal and local charges fully listed? |
| CIF | Import clearance, duties, taxes, destination handling, inland delivery. | Export clearance, main freight to destination port, minimum insurance. | Is the insurance cover adequate (not just ICC C minimum), and who handles claims? |
| DAP | Import clearance, duties, taxes, unloading at named place. | Export, freight, and delivery to the named place, ready for unloading. | Can the seller actually deliver inland, and is import clearance responsibility clear? |
| DDP | Receiving goods at named place. | Everything: export, freight, insurance choice, import clearance, duties, taxes, delivery. | Can the seller register as importer of record and pay local duties/VAT correctly? |