EXW FOB CIF DDP are delivery rules that help allocate tasks, costs and risk in a machinery sale. Use an exact named place or port and the version, such as Incoterms® 2020, rather than placing three letters beside a price without explanation.
Compare the four rules
| Rule | Key delivery point | Main question for the buyer |
|---|---|---|
| EXW | Goods made available at the named place, not loaded | Who arranges collection, loading and export formalities? |
| FOB | Goods on board at the named shipment port | Who books the vessel and handles the onward shipment? |
| CIF | Risk passes on board at shipment; seller pays freight and insurance to the destination port | What coverage and destination costs apply? |
| DDP | Import-cleared goods at the named destination, ready for unloading | Who unloads and how are import obligations fulfilled? |
Understand EXW and DDP
EXW places collection, carriage and clearance responsibilities mainly with the buyer. Under DDP the seller arranges delivery and export/import clearance and bears the applicable import duties and taxes. These two rules can be used across transport modes. Under DDP the buyer normally unloads; check any unloading costs already included in the carriage contract and agreed service scope.
Understand FOB and CIF
FOB and CIF are for sea or inland-waterway shipments. With both, risk transfers when the goods are on board at shipment. CIF adds seller-arranged freight and insurance to the named destination port; it does not move the risk-transfer point to arrival. Its default insurance is limited cover, so discuss protection appropriate for the shipment.
Choose a rule that matches the handover
ICC advises considering FCA rather than FOB where container goods are handed to a carrier before loading on board. Ask the forwarder which rule fits the actual movement. For DDP, establish that the seller can fulfil the destination’s import obligations. The shortest-looking quotation is not necessarily the most workable arrangement.
Put the remaining terms in the contract
Delivery rules do not by themselves settle payment timing, ownership transfer, product condition or warranty. State those separately. Identify assembly, commissioning, storage charges and claim procedures. A freight quote should make exclusions visible rather than leaving the buyer to discover them at arrival.
Compare quotations on the same basis
Ask for the exact named location, transport mode and services included. Compare machine condition and attachments as well as the logistics scope. Use the official ICC rules and qualified logistics or customs support for the actual contract, especially where destination clearance is uncertain.
Discuss your requirements with Supreme Galaxy LDA
Explore our machinery listings. Send us your intended use and delivery location to request a quotation. Confirm the offered unit, included equipment, condition and delivery terms in writing before ordering.
Reference resources
ICC Incoterms® 2020; ICC EXW and DDP guidance; ICC sea-transport rules. Specifications and operating instructions must be checked against the actual model and serial number.
