Use delivery terms to allocate responsibility
EXW, FOB, and DDP are shorthand for different handoff points and responsibilities. They do not replace a complete purchase agreement, and the exact named place matters. Record the term exactly as quoted rather than reducing it to a generic shipping label.
How to apply it
A creator comparing FOB and DDP should list what each price includes: origin handling, main carriage, customs work, duties, delivery appointment, and risk transfer. A lower FOB number may still lead to a higher landed total after the buyer’s separate logistics obligations.
Questions and decisions
Ask the supplier or logistics partner to state the named place, documents supplied, insurance responsibility, and which import charges are excluded. For authoritative definitions, use the current ICC Incoterms rules and have the commercial parties confirm the agreed wording.
Next step
Use the linked tools with your project’s documented inputs, retain the source or quote date beside the scenario, and update the decision when the specification changes.