🌾 Understanding Incoterms in Agro Commodity Exports: FOB, CIF, EXW, DDP, FCA, and CFR Explained
Category: Export Education
Introduction
When exporting agricultural commodities like hibiscus flower, sesame seeds, or dry ginger, understanding international trade terms—called Incoterms—is vital. These global standards define the responsibilities of buyers and sellers in international trade.
🔹 EXW (Ex Works)
Buyer handles: Pickup, export, freight, import.
Seller does: Make goods available.
Best for experienced buyers with agents.
🔹 FCA (Free Carrier)
Buyer handles: Freight, insurance, import clearance.
Seller does: Deliver to nominated location.
Ideal for land or air shipments.
🔹 FOB (Free On Board)
Buyer handles: Freight, insurance, unloading, import duties.
Seller does: Load onto vessel.
Best for sea cargo shipments.
🔹 CFR (Cost and Freight)
Buyer handles: Insurance, destination fees.
Seller does: Export clearance, freight to port.
Useful when buyers want control of insurance.
🔹 CIF (Cost, Insurance, and Freight)
Buyer handles: Unloading and import clearance.
Seller does: Shipping and insurance.
Helpful for new importers.
🔹 DDP (Delivered Duty Paid)
Buyer handles: Nothing.
Seller does: All logistics, customs, and delivery.
Perfect for first-time buyers.
Comparison Table
| Incoterm | Seller’s Responsibilities | Buyer’s Responsibilities | Best For |
|---|---|---|---|
| EXW | Make goods available | All logistics & clearance | Experienced buyers |
| FCA | Deliver to carrier | Freight, insurance, import | Air/land shipments |
| FOB | Load at port | Freight, insurance, import | Sea shipping |
| CFR | Shipping | Insurance & import | Cost-conscious buyers |
| CIF | Shipping & insurance | Import clearance | New buyers |
| DDP | Everything including taxes | Receive goods | First-time importers |
Conclusion
Choosing the right Incoterm simplifies your export process and avoids costly misunderstandings. Whether you're exporting zobo hibiscus or other agro products, get familiar with these terms to stay professional and competitive.
Need help with logistics or finding the best Incoterm for your buyer?
Contact our team at BBNKNDAY Global Trade Limited for expert advice.
