The method in which supplier will send you your inventory. Its cost varies with different methods.
E.g. Air freight, Seaport, etc.
1. DDP (Delivery Duty Paid)
It’s a delivery agreement in which the supplier prepare your inventory, pack it, and shipped it to your destination warehouse. All costs and duties are paid in this incoterm and its safest module of supplying inventory. All customs taxes are paid by the supplier.
2. FOB (Freight on Board)
In FOB supplier is liable for preparing your inventory, pack it and send it to its homeland country’s port or shipping destination.
3. EXW (Ex Works Price)
In this term, supplier prepare your inventory and keep it at designated factory location. You are responsible for checking, inspection and shipping expenses of your inventory.
4. DDU (Delivery Duty Unpaid)
In this method, the supplier prepares and send your inventory to your destination country’s port where you received it by yourself and you have to pay all your country’s custom taxes.
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