🚢 Incoterms: The simple guide to avoiding the pitfalls of international import
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🗓️ April 2025
When you're getting into import-export, there's one word you hear everywhere: Incoterms . And it's not for nothing.
Incoterms (International Commercial Terms) are the rules that define who does what in international transport.
⚠️ Misunderstanding them means exposing yourself to hidden costs, logistical delays ... or even problems with customs .
Here's a clear, jargon-free overview to help you avoid costly mistakes and master your supply chain like a pro .
1. 🏭 EXW (Ex Works) : You take care of everything from the moment it leaves the factory
👉 The supplier drops off the goods at the exit of their warehouse. From there, everything is your responsibility :
- Local transportation in China,
- Export customs declaration,
- International freight,
- Insurance,
- Customs on arrival,
- Final delivery.
🔴 Avoid if you are just starting out , unless you already work with a solid forwarder.
💡 At Born2Succeed , we advise against this term for new importers to avoid being overwhelmed .
2. ⚓ FOB (Free On Board) : The perfect balance for beginner importers
👉 The supplier takes care of everything up to loading onto the boat , including customs formalities in China.
Then you take over .
✅ Advantages:
- You master maritime transport and the rest,
- The supplier takes care of local procedures,
- Less stress, more visibility on costs.
🎯 This is one of the most suitable Incoterms for Born2Succeed customers .
3. 🧾 DDU (Delivered Duty Unpaid) : Be careful, surprise on arrival!
👉 The supplier takes care of everything up to your country , but does not pay customs taxes or VAT.
Result :
🔴 You receive a surprise invoice upon delivery.
🔴 Sometimes your package gets stuck in customs while waiting for payment.
💡 It's a convenient term on paper , but tricky in practice . If you're not familiar with import duties, avoid it .
4. 🚫 DDP (Delivered Duty Paid) : The false good idea
👉 The supplier handles absolutely everything , right up to your door, taxes included. But…
❌ You pay too much (inflated price for "all inclusive")
❌ You lose control of the process
❌ You remain legally responsible in the event of an erroneous declaration or undervaluation at customs.
💡 Many sellers use DDP to make your life easier on the surface , but in reality you are taking all the risks without knowing it .
5. 🌊 CIF and CFR : Classic pitfalls in sea freight
- CIF : Sea freight + insurance
- CFR : Sea freight only
But be careful…
❌ The seller does not take care of customs clearance ,
❌ Neither delivery to your home ,
❌ Neither actual costs upon arrival .
💡 Many people think they are receiving a "turnkey" delivery, when in reality the package stops at the port , and the real work begins for you.
✅ Conclusion: Incoterms are serious business
Incoterms are not just contractual details. They define:
- Who is responsible ,
- Who pays what ?
- Where your obligations begin and end .
A bad choice of Incoterm can ruin your margin , block your goods or create a dispute with your supplier .
🎯 At Born2Succeed, we don't leave you in the dark
Our supplier packs not only give you contacts, but also concrete advice on the Incoterms adapted to your profile :
✅ FOB recommended for the majority of our customers ,
✅ Clear explanations in each pack ,
✅ And if you want more autonomy: we help you work with a partner freight forwarder or your own.
👉 Want to import without making a mistake? Start with a clear, transparent, and well-supported package.
📦 [ Discover the Born2Succeed supplier packs ]
🔥 PS Do you want us to help you choose the right Incoterm for your product and delivery country? Write to us, we're here to help.