Incoterms explained simply
Who pays for shipping, customs, and risk?
Incoterms govern international trade, determining who bears transport costs, when risk transfers, and who is responsible for customs duties, taxes, and import taxes. We help you understand and correctly apply the appropriate delivery terms for your international shipments.
- Understanding EXW, FCA, DAP, DDP & other clauses
- DDP vs. DAP for e-commerce and B2B
- Clearly define risk transfer and cost allocation
- Prepare shipping, customs, and documents thoroughly.
Incoterms at a glance
DAP
Seller delivers · Buyer pays import duties
DDP
Seller delivers duty paid; customer receives no customs surprises
FCA / EXW
Early transfer of risk; buyer organizes more independently
10.000+
Shipments / Month
220+
Countries worldwide
< 2 seconds
per label
Up to 80%
günstiger
11 Incoterms
clearly explained
DDP / DAP
for shipping to third countries
Customs & Taxes
correctly allocate costs
shipping process
to apply practically
"So far, I've only had good experiences." International shipping is reliable and hassle-free. Customer service is quick to respond to any questions and very friendly. The process is efficient, and the prices are transparent. International shipping should be a breeze. Highly recommended!
Tine Blur
Incorrect delivery terms quickly lead to cost disputes, customs problems, and customer frustration.
Incoterms are not merely a formality. They determine who bears which costs, who organizes the transport, who assumes the risk, and who handles import duties. Especially in international shipping, incorrect assumptions can be costly.
Unclear costs
Who pays for transport, insurance, customs duties, taxes, and additional fees? Without clear Incoterms, conflicts arise.
Incorrect transfer of risk
Damage or loss can become expensive if it is not clear when the buyer or seller bears the risk.
Customs surprises
With DAP, the recipient often pays import duties. With DDP, the seller assumes full cost control.
Which Incoterms are appropriate for which shipping scenario?
Not all Incoterms are equally relevant in practice. Many e-commerce and B2B shipments primarily revolve around DAP, DDP, FCA, and EXW. The crucial factor is how much responsibility you are willing to assume.
1
Private customer / B2C
Often useful: DDP means the customer should not have to pay any customs fees upon delivery.
2
B2B Export
Often relevant: FCA, DAP or DDP – depending on the buyer, destination country and customs process.
3
Marketplace / D2C
Strong: DDP with clear total costs, so that customers do not experience any import surprises.
4
Buyer arranges transport
Possible: EXW or FCA if the buyer assumes logistics and risk early.
Unsure whether DAP, DDP, FCA or EXW is the better fit?
We will review your shipping case and show you which delivery terms best suit your costs, customs process and customer expectations.
DAP or DDP: The most important difference for your customers
For international parcels to third countries, the difference between DAP and DDP is particularly relevant: Who pays the import duties and when does the customer find out the true costs?
Delivered At Place [DAP]
The seller arranges transport to the named location. Import duties, taxes, and import fees are generally paid by the recipient in the destination country.
- less upfront cost for the seller
- Recipient may have to pay upon delivery.
- higher risk of queries or refusal of acceptance
Delivered Duty Paid [DDP]
The seller handles transport, customs clearance, and import duties. The customer receives the goods without unexpected customs charges upon delivery.
- Full cost transparency for customers
- Ideal for e-commerce, D2C and international B2C shipments
- combinable with guaranteed total costs
An overview of the 11 Incoterms
The Incoterms 2020 consist of 11 clauses. Some apply to all modes of transport, others specifically to sea and inland waterway transport.
| Incoterm | Significance | Practical relevance |
|---|---|---|
| EXW | Ex Works / Ex Factory | The buyer takes over almost everything from the seller's factory. |
| FCA | Free Carrier | Highly relevant for B2B exports and modern logistics processes. |
| CPT | Carriage Paid To / Freight Free | Seller pays for transport to the destination; risk passes earlier. |
| CIP | Carriage and Insurance Paid To | Like CPT, but with mandatory insurance for the seller. |
| DAP | Delivered At Place | Transport to destination, import duties payable by the buyer. |
| DPU | Delivered at Place Unloaded | Seller delivers and unloads at the destination. |
| DDP | Delivered Duty Paid | Seller handles delivery, customs duties and import taxes. |
| FAS | Free Alongside Ship | For use only on sea and inland waterways. |
| FOB | free on board | Sea freight clause, transfer of risk on board. |
| CFR | Cost and Freight | Seller pays sea freight, risk passes earlier. |
| Tax ID No. | Cost, Insurance and Freight | Like CFR, but with mandatory insurance. |
Our Partners
Who bears what responsibility? Transport, risk, customs and import duties.
Transport costs
Depending on the Incoterm, either the seller or the buyer bears the costs up to a specific location.
Transfer of risk
Incoterms define the point at which the risk of loss or damage passes to the buyer.
Customs & Import Duties
Especially with DAP and DDP, it is crucial who handles import duties and customs formalities.
Practical translation of Incoterms into shipping, customs and documents
The right clause is only the beginning. Crucially, shipping costs, customs clearance, documentation, tracking, and import duties must be implemented in a way that aligns with the delivery terms.
DDP Total Costs
We calculate shipping costs, customs duties, taxes and fees in advance, making costs transparent.
Documents
Commercial invoice, pro forma, CN22/CN23, ABD/MRN and other documents are prepared thoroughly.
Carrier selection
Suitable carriers and services are selected based on cost, transit time, destination country and shipping logic.
How do you incorporate international delivery conditions into your shipping process?
We help to practically integrate Incoterms, customs clearance and shipping costs into your shop, ERP or shipping process.
Frequently Asked Questions about Incoterms
What are Incoterms?
Incoterms are international delivery terms that regulate costs, obligations and the transfer of risk between buyer and seller.
What is the difference between DAP and DDP?
With DAP (Delivered Duty Paid), the buyer usually pays the import duties in the destination country. With DDP (Delivered Duty Paid), the seller handles transport, customs clearance, and import duties.
Which Incoterms are important for e-commerce?
For international B2C and D2C shipments, DAP and DDP are particularly relevant because they strongly influence the customer experience regarding import duties.
Can Parcel International help with DDP?
Yes. We can calculate shipping costs, customs duties, taxes and fees in advance, making international shipments with DDP logic more predictable.