Incoterms do three things: they say who arranges transport, where risk passes, and which costs sit with which party. Filament buyers who ignore them usually discover the gap when a container is stuck at port and nobody agrees who pays the demurrage.
The four terms filament buyers actually use
| Term | Risk passes | Best used when |
|---|---|---|
| FOB port of loading | When goods are on board | You have your own forwarder and want full control of freight |
| CIF destination port | When goods are on board | You want the supplier to arrange freight and insurance, but you clear customs |
| DAP your address | On arrival, before duty | You want door delivery but keep control of import clearance |
| DDP your address | On arrival, duty paid | You want one number and no customs administration |
Note the trap in CIF: risk passes at the port of loading, not on arrival. If the ship is delayed or the cargo is damaged mid-voyage, you own the problem even though the supplier arranged the freight.
Which term at which stage
- Trial order — FOB or CIF. You learn your own landed costs and build a forwarder relationship.
- Growth phase — CIF or DAP. Supplier's freight rates are usually better than yours at low volume.
- Container program — FOB. At container scale your own rates and consolidation win, and you control routing.
- New market entry — DDP for the first shipment only, to remove customs unknowns, then transition to FOB.
How the Incoterm changes your duty bill
Customs valuation rules can include freight and insurance in the customs value depending on the destination and the term. That means a DDP quote and an FOB quote plus your own freight do not necessarily produce the same duty. Model both, and confirm the valuation basis with your broker.
Practical clauses worth adding
- Named place or port, spelled out — "FOB" alone is not a term.
- Who pays origin charges, THC and documentation fees.
- Free time at destination before demurrage or detention starts.
- Pallet exchange or one-way pallets, and who pays for them.
- What happens if the container is rolled or the vessel is delayed.
VOXFIL quotes FOB, CIF and DDP on the same order basket, states carton and pallet dimensions so your forwarder can quote accurately, and names the loading port. See wholesale terms or ask for all three terms in one reply.
Frequently asked questions
Is FOB or CIF better for filament imports?
FOB gives you control of freight and is usually best once you ship containers regularly. CIF is convenient at low volume because the supplier's freight rates are often better than a small importer can obtain.
When does risk transfer under CIF?
Risk passes when the goods are loaded on board at the port of shipment — not on arrival. If cargo is damaged or delayed mid-voyage, that is the buyer's risk even though the supplier arranged the freight.
Does the Incoterm affect import duty?
It can, because customs valuation rules may include freight and insurance in the customs value depending on the destination and the term used. Confirm the valuation basis with your customs broker.