A clean responsibility matrix for the four most common Incoterms — EXW, FOB, CIF, and DDP — showing who pays, who bears risk, and where responsibility transfers in international trade.
| Responsibility | EXW Ex Works |
FOB Free On Board |
CIF CIF |
DDP Delivered Duty Paid |
|---|
EXW — buyer handles everything after seller makes goods available at their premises. FOB — seller loads goods on the vessel; risk transfers once loaded. Buyer handles main carriage and onward logistics. CIF — seller pays cost, insurance, and freight to destination port, but risk still transfers at origin. DDP — seller handles everything including import customs and duties to the buyer's door.
The buyer. Under CIF, the seller's cost obligation ends at the destination port. Import customs clearance, duties, taxes, and on-carriage to final destination are the buyer's responsibility. If you want the seller to handle import duties, switch to DDP.
DDP is the simplest for first-time importers because the seller manages shipping, insurance, customs, and duty payments to final delivery. However, DDP requires the seller to be able to import into the destination country. If not, FOB combined with a reliable freight forwarder or customs broker is a practical alternative.