Incoterms for Machinery Imports: EXW, FOB, CIF, DDP
Who pays for what, and where the risk changes hands when you import a laser cutting machine.
Incoterms define who pays for freight and where risk transfers. For a machine that costs more than most freight bills, the choice changes your total landed cost.
EXW
The buyer takes over everything at the factory door: export clearance, freight, insurance, import duties.
FOB
The seller delivers to the port and loads. The buyer pays freight and import. The most common term for containerised machinery.
CIF
The seller pays freight and insurance to the destination port; the buyer clears import. Useful when you do not have a freight forwarder.
DDP
The seller handles everything including duties. Simplest for the buyer, but the seller builds the cost into the price.
Verify Incoterms definitions with the official ICC text - they change between editions (2020 is current).
For more trade basics, see the trade basics page on this site.