What is the difference between FOB and CIF?

FOB (Free On Board) means the seller delivers goods loaded onto the vessel, with risk transferring at that point. The buyer pays for freight and insurance. CIF (Cost, Insurance, Freight) means the seller pays freight and minimum insurance to the destination port, but risk still transfers at the origin port when goods are loaded.

Which Incoterm gives the buyer the most responsibility?

EXW (Ex Works) gives the buyer maximum responsibility. The buyer bears all costs and risks from the seller's premises, including export clearance, loading, transportation, and import clearance.

Which Incoterm gives the seller the most responsibility?

DDP (Delivered Duty Paid) gives the seller maximum responsibility. The seller bears all costs and risks until goods are delivered to the buyer's location, including import duties and taxes.

Reference Guide

Incoterms 2020 Guide

Interactive reference for all 11 Incoterms. Click any term to see seller/buyer obligations, risk transfer points, and when to use each term.

Term	Name	Export Clearance	Main Carriage	Import Clearance	Insurance
EXW	Ex Works	Buyer	Buyer	Buyer	Optional
FCA	Free Carrier	Seller	Buyer	Buyer	Optional
CPT	Carriage Paid To	Seller	Seller	Buyer	Optional
CIP	Carriage and Insurance Paid To	Seller	Seller	Buyer	Required
DAP	Delivered at Place	Seller	Seller	Buyer	Optional
DPU	Delivered at Place Unloaded	Seller	Seller	Buyer	Optional
DDP	Delivered Duty Paid	Seller	Seller	Seller	Optional
FAS	Free Alongside Ship	Seller	Buyer	Buyer	Optional
FOB	Free On Board	Seller	Buyer	Buyer	Optional
CFR	Cost and Freight	Seller	Seller	Buyer	Optional
CIF	Cost, Insurance and Freight	Seller	Seller	Buyer	Required

Common Comparisons

FOB vs CIF

Both are sea-only terms. With FOB, the buyer pays for freight and insurance from the load port. With CIF, the seller pays freight and insurance to destination, but risk still transfers at origin when goods cross the ship's rail. CIF gives sellers more control over logistics; FOB lets buyers use their own freight contracts.

EXW vs FCA

EXW puts everything on the buyer, including export clearance—which can be problematic since the buyer may not have export capability in the seller's country. FCA has the seller handle export clearance, making it more practical for international trade.

DAP vs DDP

Both deliver to the buyer's location. With DAP, the buyer handles import clearance and duties. With DDP, the seller handles everything including duties—maximum convenience for the buyer, but the seller needs import capability in the destination country.