Which Incoterm to Choose for Your Import/Export Operations?

What is an Incoterm?

Incoterms (International Commercial Terms) are international rules that define the responsibilities of buyers and sellers in international trade.

Most commonly used Incoterms

FOB (Free On Board)

• **Seller responsibility**: Until loading on the vessel


• **Ideal for**: Experienced exporters


• **Advantage**: Transport control by buyer

CIF (Cost, Insurance, Freight)



• **Seller responsibility**: Transport and insurance to destination port


• **Ideal for**: Beginner importers


• **Advantage**: Simplicity for buyer

DDP (Delivered Duty Paid)



• **Seller responsibility**: Everything until final delivery


• **Ideal for**: Buyers wanting complete service


• **Advantage**: No surprises for buyer

How to choose?

| Criteria | FOB | CIF | DDP |
|----------|-----|-----|-----|
| Transport control | Buyer | Seller | Seller |
| Risk | Shared | Shared | Seller |
| Simplicity | Medium | Good | Excellent |

NSG advice

For importers in Senegal, we often recommend CIF which offers a good balance. NSG can then handle customs clearance and delivery.