← Back to glossary Category: Logistică Incoterms Quick answer: Standardised international rules (ICC) defining who pays for transport, risk and customs in a commercial transaction. Key takeawaysEXW — buyer collects at the seller's gateFCA / FOB — handover to the carrierCIF — cost, insurance, freight to portDAP / DDP — delivered at destination, duties included under DDP What Incoterms are Incoterms (International Commercial Terms) are rules published by the International Chamber of Commerce that set, in a sale, who bears transport cost and risk, insurance and customs formalities, and up to which point of the route. Why it matters to the board The chosen Incoterm determines the real landed cost of goods and risk exposure. A wrong choice (e.g. DDP without customs capacity) creates surprise costs and delays. Common examples EXW — buyer collects at the seller's gate FCA / FOB — handover to the carrier CIF — cost, insurance, freight to port DAP / DDP — delivered at destination, duties included under DDP How Azuvio helps Azuvio keeps the Incoterm on each order and uses it in landed-cost calculation and transport documents, so costs and responsibilities are clear across the whole flow. Frequently askedAre Incoterms legally binding?They aren't law but standard rules adopted contractually. Once included in a contract, they become binding between the parties.Which Incoterm is best?None universally. It depends on your logistics and customs capacity and where you want to transfer risk and cost. Where Azuvio fitsSoftware OMSSoftware WMSConectori ERP Related termsCMR Consignment Note — The international road transport document proving the contract between consignor, carrier and consignee.Bill of Lading (B/L) — The sea transport document proving receipt of goods, the transport contract and title to the goods.Landed Cost — The total real cost of a product up to the warehouse: purchase price + freight + duties + insurance + handling.HS Code (Tariff Code) — The international customs classification code for goods, determining duties and import/export restrictions. Last updated: 2026-07-06