The term decides who does what, and where
FOB is the most common term on our orders, and EXW, CIF and DDP are also used. The term is not a label at the end of a quotation: it settles who arranges carriage, who carries the cost to a given point, and where responsibility for the goods sits along the route. That is why it is agreed on the order rather than assumed.
What each term changes on an order
- EXW — the goods are collected at the factory; the buyer arranges everything from that point.
- FOB — the seller delivers to the named port of shipment; the buyer takes over from there.
- CIF — carriage and insurance to the named destination port are arranged by the seller.
- DDP — the goods are delivered to the destination with duties paid.
Which of these applies is named on the order documents, together with the destination, so nothing is left to assumption.
Payment structure sits next to the term
Alongside the term, the payment structure is agreed in writing: standard orders run on a 30% deposit against the signed PI with the balance settled before shipment, while smaller orders are settled in full at order placement following the service rate schedule. The applicable structure is confirmed with the quotation.
Two models, one clear quotation
Under the procurement agency model, the factory price is passed through at the actual conversion rate and the service fee is charged separately. Under the resale model, the price carries the margin. The model in use is stated on the quotation, so the price can be read the way it was built.
Trade terms sit inside the wider order flow described on Our Procurement Process; the records they produce are listed on Sourcing Documentation.