Key takeaways
- Start from buyer's comfort: do they have a forwarder in origin? No → default FOB. Yes → consider EXW.
- Never quote DDP without a whitelist check — surprise customs costs are the number-one post-sale dispute.
- Put the Incoterm + named place on every line of the PI (e.g. 'FOB Kaohsiung'); country alone is not enough.
- Keep a one-page field card on the team Slack so reps don't guess Incoterm splits during calls.
Quick Reference: 5 Common Incoterms
Each Incoterm requires different execution points during RFQ, quotation, and shipping stages.
Key Execution Points
RFQ stage: Required dynamic fields prevent missing logistics information
Quotation stage: Quote assumptions must align with Incoterm responsibility boundaries
Change management: Every Incoterm change must leave a versioned audit trail
Common Mistakes
FOB quote without confirmed port of loading → inaccurate cost estimates
CIF quote missing insurance → gaps discovered only at destination
DDP without whitelist check → commitment made for infeasible destination