Incoterms define who pays for what in international trade. Common terms for OBC:
Most Common for OBC:
DAP (Delivered at Place):
- Seller pays for transport to destination
- Buyer pays import duties/taxes
- Risk transfers at delivery
- MOST COMMON for OnFlyGo shipments
DDP (Delivered Duty Paid):
- Seller pays everything including duties
- No surprises for buyer
- Premium service
- Seller needs import capability
Other Terms:
EXW (Ex Works):
- Buyer arranges and pays everything
- Seller just makes goods available
- Maximum buyer responsibility
FOB (Free on Board):
- Used for sea freight mainly
- Risk transfers at port of origin
- Not ideal for OBC
CIF (Cost, Insurance, Freight):
- Seller pays transport and insurance
- Sea freight term
- Rarely used for OBC
OnFlyGo Default:
- Orders default to DAP
- DDP available for premium service
- Clear terms shown on invoice
- Duties estimated before shipping
Why It Matters:
- Determines who pays duties
- Defines when risk transfers
- Required on commercial invoice
- Affects pricing and quotes