Incoterms in Wholesale Drinks: EXW, DAP, CFR, FOB, FCA, CIF Explained

<h2>What are Incoterms?</h2><p>Incoterms are standardised international trade terms that specify where responsibility for goods (risk, cost, insurance) passes from seller to buyer. They are used in virtually all B2B wholesale transactions and appear on every invoice.</p><h2>EXW — Ex Works (Seller's warehouse)</h2><ul><li>**Risk and cost pass at:** Seller's warehouse (your responsibility to arrange and pay for shipping)</li></ul><p>Goods are ready at the seller's warehouse. You arrange all transport, insurance, and customs. Cheapest for the seller, most work for you. Common in EU wholesale when buyer has logistics partner.</p><ul><li>*Example: EXW Loendersloot (warehouse in Netherlands)*</li></ul><h2>FCA — Free Carrier (Named departure point)</h2><ul><li>**Risk and cost pass at:** Named point (carrier takes over there)</li></ul><p>Seller delivers to a carrier (truck, ship, logistics hub) at a named location. You are responsible from that point. Common for LCL (less-than-container-load) shipments and rail.</p><ul><li>*Example: FCA Shannon, Ireland*</li></ul><h2>CFR — Cost and Freight (Named port)</h2><ul><li>**Risk and cost pass at:** Destination port (but insurance is yours)</li></ul><p>Seller pays freight to the named port, but you must arrange and pay for marine insurance. Uncommon in land-based EU trade, more common for non-EU/overseas routes.</p><h2>CIF — Cost, Insurance, and Freight (Named port)</h2><ul><li>**Risk and cost pass at:** Destination port (insurance included)</li></ul><p>Seller pays for freight and marine insurance. You take risk when goods are loaded. Similar to CFR but seller insures. Used for long sea routes.</p><h2>DAP — Delivered At Place (Named destination)</h2><ul><li>**Risk and cost pass at:** Destination address (seller's vehicle, before unloading)</li></ul><p>Seller arranges and pays all transport and insurance to your door. You unload. Most buyer-friendly. Increasingly common for EU wholesale.</p><ul><li>*Example: DAP Buyer's warehouse, London*</li></ul><h2>DDP — Delivered, Duty Paid (Named destination)</h2><ul><li>**Risk and cost pass at:** Your address (after unloading and duties cleared)</li></ul><p>Seller pays everything including import duty, taxes, and customs clearance. Maximum seller responsibility. Rare for EU (duties are buyer's responsibility by law), but sometimes seen in non-EU transactions.</p><h2>Which term should I choose?</h2><ul><li>**If you have logistics:** EXW or FCA—cheaper, you control the shipment.</li></ul><ul><li>**If you want simplicity:** DAP—seller manages everything except unloading.</li></ul><ul><li>**If you are shipping overseas:** CFR or CIF—seller handles freight to the port, you handle clearance.</li></ul><ul><li>**If you are unsure:** Ask AKAY—we use EXW or DAP depending on shipment size and destination.</li></ul><h2>AKAY's typical terms</h2><p>For EU wholesale: - **EXW Loendersloot** (Netherlands) — you arrange transport - **DAP Destination** — we arrange transport (applies surcharge for some routes)</p><p>For export/T1: - **FOB Shannon** (Free on Board, Ireland) — freight from our warehouse to the vessel is your cost</p><p>Always confirm Incoterm on your purchase order. Disputes about who pays what are avoided by stating it clearly.</p>