EXW vs DDP vs CIF — Which Incoterm Is Right for Your Import?
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Incoterms — International Commercial Terms — define who is responsible for freight, insurance, customs, and delivery costs in a trade transaction. Choosing the wrong one can mean unexpected costs, delays, or disputes. Here's a plain-English breakdown of the most common ones for importing functional drinks from Sweden.
EXW — Ex Works
What it means: The seller makes goods available at their warehouse. Everything from that point — loading, freight, customs, insurance, and delivery — is the buyer's responsibility.
Our standard: Nordic Refreshment defaults to EXW Skövde, Sverige. Goods are prepared and palletised at our warehouse. You arrange collection and freight from there.
Best for: Buyers who have an established freight forwarder and want maximum control over logistics costs.
FOB — Free On Board
What it means: The seller delivers goods to the named port and loads them onto the vessel. From that point, risk and cost transfer to the buyer.
Best for: Long-haul shipping where buyers outside Europe want to control ocean freight costs. More common in container shipping to markets like the US, Australia, or Asia.
CIF — Cost, Insurance, and Freight
What it means: The seller pays for freight and insurance to the named destination port. Risk transfers to the buyer once goods are loaded onto the ship.
Best for: Buyers who want the seller to handle international freight arrangements but will manage local customs clearance and final delivery themselves.
DDP — Delivered Duty Paid
What it means: The seller handles everything — freight, customs, duties, and delivery to the buyer's named address. The buyer simply receives the goods.
Best for: Buyers who are new to importing, don't have a freight forwarder, or want a completely hands-off experience. We can arrange DDP for certain destinations — contact us to discuss.
Which Should You Choose?
- Experienced European importer with a freight partner → EXW
- New to importing, want minimal hassle → DDP
- Importing from outside EU (US, Asia, Oceania) → FOB or CIF
A Real Example
A distributor in France ordering 15 pallets of NOCCO and Vitamin Well on EXW terms: they arrange a freight forwarder to collect from Skövde, drive to France, and clear EU customs (straightforward within the EU — no customs duty, Reverse Charge VAT applies). Total freight cost for this example: approximately €1,300 including insurance.
Read more: Pallet Optimisation Guide | How to Import NOCCO to Your Country | Request a wholesale quote
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