Preparing the published article.
Commercial Terms: DAP, CIF and Incoterms
The three letters decide who pays when something goes wrong in transit.
Common terms
| Term | What it means |
|---|---|
| Ex-works | Buyer collects and carries all risk from the seller's door |
| FOB | Seller delivers to the carrier; risk passes at loading |
| CIF | Seller arranges freight and insurance to the destination port |
| DAP | Seller delivers to a named place; buyer unloads |
| DDP | Seller clears import and delivers duty paid |
Practical notes
- Incoterms cover risk and cost, not ownership.
- Insurance should cover the machine value, not just freight.
- Photograph loading and unloading to support any claim.
Incoterms are defined by the ICC and updated periodically. Confirm the current rule version in your contract.

