Incoterms
Category: Contracts
Definition (plain English)
International trade terms that define the named handover place and how cost, risk, freight control, insurance, export handling, and import responsibility are split between buyer and seller.
Why it matters commercially
The Incoterm changes the real quote basis, landed-cost model, document responsibility, and who owns expensive exceptions before and after cargo moves.
Example
Two suppliers quoted $9.80 per carton, but one was EXW factory and the other was FOB Ningbo, so the buyer had to add pickup, export handling, and port charges before comparing them.
Common mistake
Writing only "FOB" or "DAP" without the named place, Incoterms version, included charges, and who controls freight and customs steps.
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Landed Cost
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