Incoterms
International Commercial Terms — a standardized set of trade terms defining buyer and seller responsibilities, published by the ICC.
Trade termTL;DR: This term is one of 28 definitions in the China–GCC freight glossary, so the signal is the number it changes — not the acronym. It sits in the Trade term category and links to 3 related terms for adjacent freight math. Use the example below to turn the definition into a before/after calculation before you quote or clear cargo.
What it means
Incoterms are the ICC’s standardized rules that define who pays for and is responsible for transport, insurance, and clearance at each stage of a shipment. Terms like EXW, FOB, CIF, DAP and DDP tell both parties exactly where the seller’s responsibility ends and the buyer’s begins, so there is no ambiguity about who bears risk when goods are damaged in transit or who pays a port fee. Choosing the wrong Incoterm is one of the most common — and expensive — mistakes in China-to-GCC trade: an importer who agrees to EXW thinking they are getting a deal may find themselves arranging and paying for inland trucking in China, export clearance and the ocean leg without realising it. The current edition is Incoterms 2020, and every quote should state the version explicitly.
Why it matters on the China–GCC route
Incoterms are the single most important line on a quote — they define exactly where cost and risk transfer. Getting them wrong is how importers quietly overpay or absorb unplanned liability.
Example
A quote that says “CIF Jebel Ali” tells the Qatari buyer that the seller pays freight and insurance to Jebel Ali, but the buyer owns the cargo risk from that point onward.
Related terms
DDP
Delivered Duty Paid — the seller delivers goods cleared for import and pays all duties and taxes up to the destination.
Learn more →DAP
Delivered At Place — the seller delivers goods ready for unloading at the destination, but the buyer handles import clearance.
Learn more →B/L
Bill of Lading — a document issued by a carrier acknowledging receipt of cargo and serving as a contract and title document.
Learn more →