Incoterms decide who pays for transport, insurance and duties, and where the risk passes from seller to buyer. Choosing the right one avoids surprise costs when parts arrive.
The rules you will meet most often
- EXW (Ex Works): you collect at the factory and handle everything from there, including export clearance.
- FCA (Free Carrier): the seller clears export and hands goods to your carrier. Works for any transport mode.
- FOB (Free On Board): sea freight only; risk passes when goods are loaded on the vessel at the port.
- CIF (Cost, Insurance and Freight): sea freight only; the seller pays freight and minimum insurance to your port.
- DAP (Delivered at Place): the seller delivers to your address; you pay import duty and taxes.
- DDP (Delivered Duty Paid): the seller delivers and pays import duty and taxes as well.
What usually suits machined parts
Small, urgent shipments usually go by air express, often on DAP terms. Larger, regular volumes may go by sea on FOB or CIF with your own forwarder. Agree the term in the quote so prices are comparable.
Duties and customs
Import duty depends on the HS code and the country of import. Ask your customs broker for the current rate before comparing suppliers.
Chi Xin Technology is a CNC machine shop in Nantun District, Taichung, Taiwan, founded in 2022. We run 5+ CNC machines — 4.5-axis CNC machining centers and CNC lathes — and mainly machine aluminum alloys and alloy steel, with a metal tolerance of 0.02 mm. We also offer wire EDM and surface finishing including anodizing, and we export to customers in Europe and North America.
Frequently asked questions
Which Incoterm should I ask for?
Agree it in the quote. Air express shipments often use DAP; sea freight often uses FOB or CIF with your forwarder.
