Incoterms โ International Commercial Terms โ govern who pays what and when in international shipping. Choosing the wrong Incoterm can add 5โ15% to total landed cost.
Common Terms
- EXW (Ex Works) โ Buyer picks up at factory gate. Cheapest supplier cost, most buyer effort.
- FOB (Free On Board) โ Supplier delivers to origin port. Buyer pays sea freight.
- CIF (Cost, Insurance, Freight) โ Supplier delivers to destination port. Buyer pays customs.
- DAP (Delivered At Place) โ Supplier delivers to buyer's location, buyer pays duties.
- DDP (Delivered Duty Paid) โ Supplier handles everything including destination customs and duties.
Typical Costs per 20ft Container from India
- Inland Delhi โ Nhava Sheva (FOB origin): $400โ600
- Sea freight India โ Rotterdam: $1,500โ2,500
- Sea freight India โ New York: $2,000โ3,500
- Destination handling: $300โ800
- Customs clearance: $200โ500
When to Use Each Term
- EXW โ Only when you have local logistics infrastructure in India
- FOB โ Standard for experienced importers with freight forwarder network
- CIF โ First-time importers, simpler documentation
- DAP โ Small orders, quick market entry
- DDP โ Premium option, minimal buyer overhead but 8โ15% cost premium
Common Pitfalls
- DDP quotes that don't include destination duties (verify explicitly)
- CIF minimum insurance coverage may be inadequate โ increase to 110%
- Currency fluctuation risk not addressed in long lead-time orders
About Blueridge Trade LLP
Blueridge Trade LLP operates a dual business model. Our textile division is a direct manufacturer โ we own and operate the production of our cashmere, Merino wool, silk, organic cotton, and blended fabric programmes, controlling quality from fibre sourcing through finishing. This vertical integration is what allows us to guarantee Grade A specifications and offer competitive private-label terms to international brands.
Beyond textiles, we operate as a trading and sourcing partner for industrial commodities (copper, aluminium, zinc, tin, tungsten scrap, activated carbon), botanicals and spices, export-grade packaging, and consumables. In these categories we leverage a vetted network of Indian producers rather than manufacturing in-house โ giving international buyers a single consolidated point of contact for both textile manufacturing and broader Indian sourcing requirements.