Incoterms for Mattress Exporters: EXW, FOB, CIF, DAP and DDP
Incoterms split cost, risk and responsibilities between seller and buyer. FOB and CIF are for sea freight only; DAP and DDP put delivery and, for DDP, import duty on the seller.
Key points
- Common terms. EXW: buyer collects from the seller's premises.
- Delivered terms. DAP: seller delivers to the named place, buyer clears import.
- Choosing. New exporters often start with FOB or FCA.
- Before you agree a term. Check who books freight, who insures the goods, where risk passes and who clears customs at each end.
- Detailed guidance. Choose the term that matches what you can control.
Common terms
EXW: buyer collects from the seller's premises. FCA: seller hands over to the buyer's carrier. FOB: goods loaded on the vessel at the named port. CIF: seller pays freight and insurance to the destination port.
Delivered terms
DAP: seller delivers to the named place, buyer clears import. DDP: seller also clears import and pays duty; this carries the most risk and complexity for the seller.
Choosing
New exporters often start with FOB or FCA. Name the exact port or place in the contract and confirm insurance.
Before you agree a term
Check who books freight, who insures the goods, where risk passes and who clears customs at each end. Name the port or place exactly, because the same term can mean different things at different points. Confirm the Incoterms edition in the contract, such as Incoterms 2020.
Who does what
| Term | Seller arranges | Buyer arranges |
|---|---|---|
| EXW | Goods ready at premises | Loading, export and import clearance, freight |
| FCA | Export clearance, handover to carrier | Main freight, import clearance |
| FOB | Export clearance, loading on vessel | Sea freight, insurance, import clearance |
| CIF | Freight and insurance to destination port | Import clearance, inland delivery |
| DAP | Delivery to the named place | Import clearance and duty |
| DDP | Everything including duty | Receiving the goods |
Detailed guidance
Choose the term that matches what you can control. Ex-works places almost everything on the buyer and suits experienced importers. Free carrier and free on board are common for first exports, because you handle export clearance and loading but not ocean freight. Cost, insurance and freight makes you responsible for the main carriage and insurance, which can be convenient for buyers but ties you to freight prices.
Delivered terms give the buyer a simple landed price but expose you to import-side costs and delays. Always name the exact port or place and the Incoterms edition, for example Incoterms 2020. Make sure the term matches the transport mode, since some terms apply only to sea freight. Check that your insurance, your letter of credit if any, and your documents all reflect the same term.
Worked example (illustrative figures)
On a goods value of 100 units, an exporter quotes FOB. The buyer pays the sea freight (say 8 units) and insurance (1 unit) and handles import clearance. Under CIF the exporter would quote 109 and pay freight and insurance to the destination port, but the buyer would still clear imports. The numbers are illustrative; the split of responsibility is what matters.
Frequently asked questions
Which incoterm should a new exporter use?
FOB or FCA are common starting points.
Where do I send my requirements?
Use the bulk and export request form or message Sleepwit on WhatsApp. We reply with questions and a written quote; prices, minimums and lead times are confirmed in the quote.
Need a quote for this? Sleepwit manufactures and exports to specification. Send your requirements and we reply in writing.
Export from India Request a quoteSources
- International Chamber of Commerce. Incoterms 2020 rules. Source
Links go to PubMed searches for the paper title or to the official guideline or regulator page. Standards and regulations are revised, so check the current edition before relying on them. Mattress and pillow research is limited; treat findings as a starting point.
Keep reading
Mattress Export Guide: Incoterms, HS Codes, Packing and Documents
Exporting mattresses and pillows from India: HS codes, incoterms, packing, documents, standards by market and how to start.
Read more →Bulk & exportMattress Export Documents Checklist
The documents that usually accompany a mattress or pillow export: invoice, packing list, bill of lading, certificate of origin and test reports.
Read more →Bulk & exportCompressed and Roll-Packed Mattress Shipping: What Works
Which mattresses can be compressed and roll-packed for freight, how recovery works and what to avoid.
Read more →This article is general information, not medical advice. If you have persistent pain or sleep problems, please speak to a doctor.
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