ℹ️ K STAR Trade Tip – Know Your Incoterms

Choosing the right Incoterm based on your needs is key to achieving the best trade results—saving costs, improving efficiency,
and ensuring smooth cooperation. Let’s walk through the different terms so you can pick the one that works best for you.

⭐ LEVEL 1: Buyer-control terms.

You take control from the start, greater responsibility but better cost optimization. You manage shipping, insurance, customs, and delivery—all on your terms.

📦EXW (Ex Works) : Buyer picks up goods; handles all transport and costs.
📦 FCA (Free Carrier) : Seller delivers to carrier; buyer takes over from there.
📦 FAS (Free Alongside Ship) : Seller delivers goods beside the ship; buyer loads and ships.
📦 FOB (Free on Board) : Seller loads goods on board; buyer takes over at that point.

Notes:
- Best for experienced buyers with their own logistics or freight forwarders, and who want full control and potentially lower costs.
- Optimize shipping cost and routing, lower trade costs.

⭐ LEVEL 2: Shared-Cost Terms

The seller handles part of the transport—but risk transfers to you earlier than delivery.

📦 CFR (Cost and Freight) : Seller pays sea freight; buyer covers insurance and import.
📦 CIF (Cost Insurance and Freight) : Seller pays freight and insurance; buyer handles unloading and import.
📦 CPT (Carriage Paid to) : Seller pays transport to destination; risk passes at first carrier.
📦 CIP (Carriage and Insurance Paid To) : Same as CPT, plus seller pays insurance.

Notes:
- Good balance for buyers who want convenience without full delivery.
- Seller pays shipping, you manage import and local delivery.

⭐ LEVEL 3: Seller-Handled Terms

The seller takes care of almost everything—transport, customs, even duties (with DDP).

📦 DAP (Delivered at Place) : Seller delivers to buyer’s site; buyer clears customs.
📦 DPU (Delivered at Place Unloaded) : Seller delivers and unloads at named place; buyer clears customs.
📦 DDP (Delivered Duty Paid) : Seller handles everything; buyer simply receives goods.

Notes:
- Perfect for new importers or those who prefer simplicity.
- Focus on your sales, not shipping headaches.

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