Negotiating The Deal · 06 of 08

Who Pays What.
Who Carries Risk.
And From Where.

Seven common trade terms decide who pays for what.
They also set the point where the risk passes to you.
Settle the term first, and prices become easy to compare.

06
Of Eight
2
Min Read
3
Sections
7
Trade Terms
EXW · FCA · FOBTHREE STARTING POINTS · HOW FAR THE SELLER TAKES ITWHERE THE SELLER’S JOB STARTSThree Delivery TermsEXW is the minimum · FCA hands over inland · FOB runs to the vesselEXW · EX WORKS✓ Ready at the warehouse✓ Buyer loads and clears✓ Buyer books the freight✓ Needs an India agentseller’s minimum jobFCA · FREE CARRIER✓ We clear export customs✓ We hand to your carrier✓ At the named place✓ Buyer books main freightinland handoverFOB · FREE ON BOARD✓ We clear export customs✓ We load on the vessel✓ Buyer takes it onward✓ Our standard agro termthrough port loadingWHAT ANTAARA QUOTESAntaara quotes EXW for buyers with their own agent in India, and FCA whenyou want us to hand over to your nominated carrier inland. FOB stays ourstandard term, covering export customs, port handling and loading on board.Incoterms 2020 · International Chamber of Commerce
01
EXW, FCA & FOB

Where Does the
Seller’s Job Start?

These three terms fix how much of the India-side work the seller does. Under EXW, or Ex Works, we pack the goods and keep them ready for you to collect at the packing warehouse in India, and we do nothing more.

Under FCA we clear export customs and hand the goods to your carrier at a named place, and under FOB we load them on the ship.

Antaara’s Position

Antaara quotes EXW if you have an agent in India, and FCA if you want an inland handover to your own carrier. FOB is our usual term, and under all three of these terms the marine insurance always stays with you.

EXW · FCA · FOB Standard
The CIF Term SELLER ARRANGES FREIGHT AND INSURES THE VOYAGE ONE PRICE · FREIGHT AND INSURANCE INCLUDED Freight + Insurance delivered to your named destination port SELLER COVERS ✓ Export customs clearance ✓ Loading at the origin port ✓ Ocean freight cost ✓ Marine insurance premium inside the CIF price BUYER COVERS ✓ Destination port charges ✓ Import customs and duties ✓ Inland delivery from port ✓ Any local handling fees at the destination end WHAT ANTAARA OFFERS CIF puts the marine insurance on the seller. We keep the insurance with you, so we do not offer CIF. You can still ask us to book the ship. That term is CFR, and the next section shows how it works. Incoterms 2020 · International Chamber of Commerce
02
CIF

What CIF
Really Means.

CIF means cost, insurance and freight. The seller books and pays the sea freight to your port, and also buys the marine insurance, so you get one price that covers the goods from the Indian port right up to yours.

Many buyers miss one point: the risk passes to you at the loading port, so you claim any damage at sea on the policy the seller bought.

Antaara’s Position

Antaara does not offer CIF, because the marine insurance always stays with you. If you would like us to book the freight to your port, please ask us for CFR instead, and your own policy will then cover the voyage.

CIF · Freight + Insurance
CFR, CPT & CIP COST & FREIGHT · CARRIAGE TO DESTINATION WHO PAYS FREIGHT · WHO CARRIES THE COVER Same Freight, Your Cover CFR and CPT skip insurance · CIP adds it back CFR · COST & FREIGHT ✓ Seller pays ocean freight ✓ Buyer arranges own cover ✓ Risk passes at origin port ✓ Like CIF, minus insurance for buyers with own cover CPT / CIP · CONTAINER ✓ To your named place ✓ CPT pays carriage only ✓ CIP adds the insurance ✓ Risk at the first carrier for container shipments WHAT ANTAARA OFFERS With CFR, we book the ship and add the freight to your price. Your own marine policy covers the goods at sea. For a place inland, past the port, your own forwarder takes the goods on from there. Incoterms 2020 · International Chamber of Commerce
03
CFR & CPT / CIP

Freight With or
Without Cover.

CFR means cost and freight. It works like CIF, except that you buy your own marine insurance while the seller pays the sea freight.

CPT and CIP work in much the same way, but the goods go to a named place and not to a port. CPT does not include insurance, and CIP does.

Antaara’s Position

Antaara offers CFR on request. We book the ship and add the freight to your price, while the marine insurance always stays with you, because the risk passes to you at the Indian port. We do not offer CPT or CIP.

CFR on Request
✦
Ready to Source from India?

Let’s find the Incoterm that fits your route.

Tell us your destination, expected volumes and product line. We will quote on the Incoterm — EXW, FCA, FOB or CFR — that suits your logistics setup.

Incoterm Fit•Clear Costs•Smooth Handover
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