Fiducia TogetherIncoterms
Standard three-letter terms saying who pays for what and where risk passes.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Incoterms are internationally standardised rules — EXW, FOB, CIF, DAP, DDP and others — defining the seller's and buyer's obligations for delivery, cost, risk and customs.
Why it matters
They decide who pays freight, who insures, and at exactly what point the goods become the buyer's problem. Disputes about damaged or delayed shipments almost always come back to which term applied.
What it looks like in practice
DDP means the seller handles everything including import duty; EXW means the buyer collects from the seller's door. Everything else sits between.\n\nAlways state the Incoterm AND the named place: "DAP Manchester" not just "DAP".
What to watch out for
Agreeing DDP into a country whose import rules you do not know, which makes you the importer of record with the obligations that carry.
Where to get proper advice
Your freight forwarder, who deals with this daily. The Institute of Export and the DBT's export support service.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.