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Incoterms.

Standard three-letter codes — FOB, DDP, EXW — that fix exactly where the seller's responsibility, cost and risk end and the buyer's begin.

What it means

Standard three-letter codes — FOB, DDP, EXW — that fix exactly where the seller's responsibility, cost and risk end and the buyer's begin.

What goes wrong

Agreeing a price without an Incoterm is agreeing a number without saying what it includes. DDP and EXW on the same goods can differ by a third.

More in Logistics

Every term here is one the protocol actually uses, defined for somebody who was never taught it — with the part that usually goes wrong. All terms →