Guide

Incoterms 2020, in plain language

An Incoterm decides where risk and cost change hands — not who arranges what. Compare quotes on the same term or you are comparing nothing.

We quote EXWFOBCIFDDP
EXWEx Works

Buyer takes over at the factory gate. Cheapest quote on paper, most work for you — export clearance in India becomes your responsibility.

FCAFree Carrier

Seller hands over to your nominated carrier, cleared for export. Useful when you control the freight but not the local leg.

FOBFree on Board

Seller loads on the vessel at the named Indian port. The most common term we quote for ocean shipments.

CFRCost and Freight

Seller pays ocean freight to your port; risk still passes at loading, so insure it yourself.

CIFCost, Insurance and Freight

As CFR plus minimum insurance cover. Common for first-time buyers who want one number to the destination port.

CPT / CIPCarriage Paid To / Carriage and Insurance Paid

Multimodal equivalents of CFR and CIF — used for air and door-to-terminal moves.

DAPDelivered at Place

Seller delivers to your named address, import duty excluded. Good for sample and replenishment air shipments.

DPUDelivered at Place Unloaded

As DAP, with unloading at the seller’s cost and risk.

DDPDelivered Duty Paid

Seller carries everything including import duty. Quote it only when the supplier genuinely understands your customs regime.

Checklist

Export documents, and what each one proves

Proforma invoice

Issued before payment. Sets specification, price, Incoterm, ports, payment terms and validity. Use our generator.

Commercial invoice

The final priced document, matching the PI unless a change was agreed in writing.

Packing list

Carton-level detail: net and gross weight, dimensions, marks and numbers, carton count per line.

Bill of lading / Airway bill

Title document from the carrier. Check consignee, notify party and description against your LC wording.

Certificate of origin

Chamber-issued, or preferential where a trade agreement applies. Required for duty treatment in several of our markets.

Inspection certificate

Our AQL report, or a third-party agency report where your buyer or bank requires one.

Phytosanitary / fumigation

For agricultural goods and wooden packaging (ISPM-15). Arranged at the port of loading.

Lab / test reports

Food, cosmetics, food-contact and medical lines. Batch-linked, issued by NABL-accredited labs.

Insurance certificate

Under CIF and CIP terms; minimum 110% of invoice value is standard.

LC documents set

Where payment is by Letter of Credit, documents are prepared strictly to the credit — discrepancies delay payment, not shipment.

Product-specific certificates — FDA prior notice, CE marking, REACH statements, BIS — are confirmed per order before production starts.

FAQ

Sourcing questions we answer daily

MOQ is set by the factory, not by us. Typical ranges: 5,000 pieces for towels, 2,000 sets for tableware, 5 MT for spices, one FCL for tiles. We tell you the real MOQ before you invest in samples.

Seven to fifteen working days for existing designs; three to five weeks where tooling, a new glaze or a lab dip is involved. Courier adds three to five days.

The buyer pays sample and courier cost, usually adjusted against the first order. Existing stock samples are often free apart from freight.

30% advance by TT with the balance against inspection sign-off and a copy of the bill of lading, or an irrevocable LC at sight for larger orders.

We book with your nominated forwarder, or ours if you do not have one. Freight forwarding is a supporting step in our process — sourcing and quality are the service.

Yes. Inspection-only engagements are quoted per man-day plus travel, with the same AQL report and photo set.

Next step

Still unsure where to start?

Send the product and the market. We will tell you the realistic MOQ, lead time and landed cost band before you commit to anything.

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