Last updated: 01/06/2026
What are Incoterms?
Incoterms, short for “International Commercial Terms”, are a set of standardised three-letter codes published by the International Chamber of Commerce (ICC). They define, in any sales contract, exactly where the seller’s responsibility for a shipment ends and the buyer’s begins: who arranges transport, who pays freight and insurance, who clears customs, and the precise point at which risk passes from one party to the other.
Getting the Incoterm right protects you from unexpected costs and disputes. Getting it wrong can leave you paying for a leg of the journey you never agreed to.
The most common Incoterms
- EXW (Ex Works), the buyer collects from the seller’s premises and handles everything thereafter. Maximum buyer responsibility.
- FCA (Free Carrier), the seller delivers to a named carrier; a clean split that works well for air freight.
- FOB (Free On Board), the seller loads goods on the vessel; common for sea freight.
- CIF (Cost, Insurance and Freight), the seller pays freight and minimum insurance to the destination port.
- DAP (Delivered At Place), the seller delivers to a named destination, import duties excluded.
- DDP (Delivered Duty Paid), the seller delivers fully cleared, duties paid. Maximum seller responsibility.
How to choose
The right term depends on how much of the journey you want to control and pay for. New importers often start with DAP or DDP for simplicity, then move to FCA or FOB as they build freight relationships and want to control cost. For air shipments, see our air freight service; for ocean, see sea freight. Whichever term you choose, our customs clearance team can manage the Lebanese import or export formalities.
If you are unsure which Incoterm fits your shipment, contact our team, five decades of forwarding experience means we can recommend the term that keeps your costs and risk where you want them.
Frequently asked questions
What is the difference between FOB and CIF?
Under FOB (Free On Board) the seller's responsibility ends once goods are loaded on the vessel, and the buyer arranges and pays for ocean freight and insurance. Under CIF (Cost, Insurance and Freight) the seller pays for freight and minimum insurance to the destination port, though risk still transfers at the origin port.
Which Incoterm is best for a first-time importer?
Many first-time importers prefer DAP (Delivered At Place) or DDP (Delivered Duty Paid) because the seller handles most of the logistics. DDP even includes import duties. The trade-off is less control and often a higher headline price. As you gain experience, terms like FCA or FOB give you more control over freight costs.
Do Incoterms cover who pays import duty in Lebanon?
Only DDP makes the seller responsible for import duties and clearance in the destination country. Under every other Incoterm, the buyer (importer) is responsible for Lebanese customs duties and clearance. Our customs clearance team can handle this on your behalf.