Incoterms for industrial equipment imports
Who pays, who carries the risk, and where the price really ends.
Short answer
Which Incoterms are common for machinery?
- EXW — buyer handles everything from the supplier's premises
- FCA / FOB — seller delivers to the carrier or on board at origin
- CIF / CIP — seller pays main freight and insurance; risk passes at origin
- DAP — seller delivers to your site, not unloaded, duties excluded
- DDP — seller also pays import duties and taxes
How do you choose the right term?
Choose based on who can manage freight, insurance and customs more reliably. Oversized or fragile equipment often benefits from one party controlling the full route. Whatever you choose, apply it to every supplier.
How do you estimate landed cost?
Landed cost = equipment price + packing + inland and main freight + insurance + import duties and taxes + port and clearance fees + inland delivery to site. Duty rates depend on the tariff code and destination — confirm them with a customs broker.
Quick questions
Is CIF the same as delivered?+
No. Under CIF the seller pays freight and insurance, but risk passes to the buyer once goods are loaded at origin.
Does DAP include import duties?+
No. Under DAP the buyer pays import duties and taxes; under DDP the seller pays them.
Should the RFQ state the Incoterm?+
Yes. State the Incoterm and named place so quotations are comparable.
Summary
- Incoterms set where cost and risk move to the buyer
- Ask all suppliers to quote on the same term and place
- Compare offers on estimated landed cost, not ex-works price
Global B2B Group is an independent, human-reviewed procurement channel — not a manufacturer, contractor or lender. Figures and methods here are general guidance; confirm project-specific details with qualified advisers.
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