Be12 EXIMIncoterms 2020 for Indian exporters: which one should you quote?
Updated 15 October 2026 · Be12 EXIM team, Chennai
The Incoterm on your quote decides who pays freight and insurance, where risk passes to the buyer, and what goes on your invoice and shipping bill. Most Indian exporters should start with FOB, CIF or FCA.
All 11 terms at a glance
| Term | You pay up to | Risk passes |
|---|---|---|
| EXW Ex Works | Goods ready at your premises | At your premises |
| FCA Free Carrier | Export clearance, hand-over to buyer’s carrier | At hand-over |
| FAS Free Alongside Ship | Goods alongside the vessel | Alongside ship |
| FOB Free On Board | Loaded on the vessel at the Indian port | On board |
| CFR Cost and Freight | + sea freight to destination port | On board in India |
| CIF Cost, Insurance, Freight | + minimum cargo insurance | On board in India |
| CPT Carriage Paid To | Freight to named place (any mode) | At first carrier |
| CIP Carriage and Insurance Paid | + broad (ICC A) insurance | At first carrier |
| DAP Delivered At Place | Delivery at buyer’s place, not unloaded | At destination |
| DPU Delivered at Place Unloaded | + unloading | After unloading |
| DDP Delivered Duty Paid | + import duty and taxes abroad | At buyer’s door |
Which one to quote
- FOB for most first sea shipments: you control Indian costs, the buyer controls freight.
- CIF / CFR when buyers (common in the Gulf, Africa and Asia) want a landed port price and you can get good freight rates.
- FCA for air, courier and containers picked up at an ICD.
- Avoid EXW and DDP early on: with EXW you still need the shipping bill in your name for GST and incentives; with DDP you carry import duty and clearance risk abroad.
Quote with the right Incoterm every time
Our calculator works out EXW, FOB, CFR and CIF prices, and your invoices print the Incoterm automatically.
Common mistakes
- Quoting CIF but insuring only the goods value (cover at least 110% of CIF).
- Using “FOB” for air cargo; FCA fits better.
- Writing just “CIF” without the named port, e.g. “CIF Jebel Ali, Incoterms 2020”.
FAQs
Which Incoterm is best for Indian exporters?
FOB is the most common for first sea shipments. CIF suits buyers who want a port-of-destination price. FCA is better for air and courier.
Is FOB or CIF better for the exporter?
FOB has less risk and fewer costs for you. CIF lets you earn on freight and win buyers who want a landed price, but you must book and insure the cargo.