Pros: Cheapest!
Cons: Slowest delivery
Pros: Fast delivery
Cons: Expensive
Pros: Fast delivery
Cons: Can deliver just only near location
Pros: Cheap and lowest damage on the goods
Cons: Slow delivery
Pros: Fastest Delivery
Cons: Most Expensive! and can deliver only small batch
Incoterms or International Commercial Terms was used as international and domestic trade contracts. There are 7 mains popular Incoterms rules.
Importer: The buyers take all responsibility on shipping and transportation cost from the seller's factory to the buyer's factory.
Exporter: The sellers don't need to pay any delivery cost.
This rule is the most popular rule in international trade!
Importer: The buyers take responsibility on transportation cost after the goods loaded on board or put on a shipping vessel.
Exporter: The sellers takes responsibility on the cost of shipping, custom documents, and loading the goods on board at their side.
Note: This rule is applied just only in ocean freight.
Importer: The buyers takes all responsibility on shipping and transportation cost as EXW term, except only export entry document at the sellers side.
Exporter: The sellers pays just only export entry or the document that the custom requires before proceeding export.
Importer: The buyers pay only the part of shipping, custom documents, and tax tariff at their side.
Exporter: The sellers take responsibility on delivery cost from their factory to freight cost, including insurance.
Importer: Importers pay only import tariff duties and taxes at their side.
Exporter: Exporters takes responsibility on all delivery cost and some extra costs in importers' country, except import duties and taxes.
Note: Some province in each country charges some extra costs such as carriage, insurance, custom clearance and other expenses up to the province that the goods pass.
Importer: Importers pay import tariff duties and taxes at their side, including extra costs in importers province.
Exporter: Exporters takes responsibility on all delivery cost from exporter's factory to importer's factory, except import duties and taxes.
Note: DAP is launched in order to transfer extra costs in DDU term to importer.
Importer: The buyers don't pay any delivery cost.
Exporter: The sellers take all responsibility on delivery cost from the seller's factory to the front of buyer's factory.