Incoterms decide who pays for what, and where risk passes. They also change what the value on a customs record means — which trips people up when comparing markets.
| Term | Seller pays for | Risk passes |
|---|---|---|
| EXW (Ex Works) | Nothing beyond making goods available at the factory | At the seller's premises |
| FOB (Free On Board) | Transport to the port and loading | When goods are on the vessel |
| CIF (Cost, Insurance, Freight) | Freight and insurance to the destination port | Still when goods are on the vessel — the seller pays more but only to the port |
| DDP (Delivered Duty Paid) | Everything up to the destination, including duty | At the named destination |
The common misreading: CIF sounds like the seller carries risk to the destination. They do not — risk passes at the vessel, same as FOB. What changes is who pays, not who carries the risk in transit.
A declared value is not a comparable number across records unless the terms are comparable. A CIF value includes freight and insurance; an FOB value does not. Two shipments that look similar can differ by the cost of moving them halfway around the world.
This is one more reason to be cautious about comparing values directly between markets, and to ask what the declared basis is when a number looks out of line.
When you use import values to size a market, treat them as an order of magnitude, not an invoice. They are reliable for comparing scale between markets, and unreliable for working out what a buyer pays per unit — for that you need the specific shipment, and even then only if the terms are stated.
Tell us your product and target market. We will confirm available fields and dates, then share relevant record screenshots or arrange a demonstration.