Which Incoterms should I agree for precision gear shipments?
Incoterms for precision gear shipments
Choose an Incoterms® rule only after the transport mode, named place and import responsibility are clear. FOB and CIF are sea or inland-waterway rules, while DAP and DDP can suit other modes. The rule allocates defined delivery, cost and risk obligations, but it does not replace a complete gear purchase order, packaging specification or insurance decision.
Decide the handover point before pricing
- FOB: use only when the sea-shipment handover point is the right commercial boundary for the order.
- CIF: also applies to sea or inland-waterway transport and should be read with its insurance and destination-port implications.
- DAP or DDP: name the exact destination and confirm who manages import clearance, duties and taxes. Do not assume DDP is available for every destination or product.
Use the current ICC rule text and state the rule, named place or port, and “Incoterms® 2020” in the contract.
A purchase-order line that avoids ambiguity
Instead of writing only “FOB China,” write the agreed rule, the named port or delivery point, the version, shipment mode, packaging standard and the party responsible for export and import formalities. PairGears’ public brand-owner page refers to customized packaging and logistics services, but the available route and scope should be confirmed for the actual order.
See PairGears packaging and logistics services for the relevant capability context.
