Incoterms for window orders: FOB, CIF, DDP
The Incoterm on a window order is not a formality — it decides who books the freight, who insures the container of glass, and where the risk changes hands. Most of our export orders run FOB to the destination, because the buyer controls the freight and the buyer controls the cost. CIF adds the freight and insurance to a named port; DAP and DDP carry the shipment further, to the site or the cleared destination, and the price and the timeline change with them. Name the term and the place, and the rest follows.
FOB: to the port, buyer on from there
Free On Board means we deliver the container to the named port of loading and clear it for export; from the moment it is on board, the buyer carries the freight, the insurance and the risk. It is the default for the experienced importer, because it lets the buyer use their own forwarder, their own rates and their own customs broker. The buyer sees the freight cost and controls it, which is why most of our repeat orders run FOB.
CIF: freight and insurance to the destination port
Cost, Insurance and Freight adds the ocean freight and the marine insurance to a named destination port. The buyer takes over at the destination port — unloading, import clearance and the last mile are theirs. CIF suits the buyer who wants one number to the port without running their own freight, but it is worth checking the insurance cover the term specifies, which is the minimum level, not the all-risk cover a container of glass sometimes needs.
DAP and DDP: to the site or the cleared destination
Delivered At Place carries the shipment to the named place — often the site — with the buyer handling import clearance and duties; Delivered Duty Paid carries it to the buyer cleared and duty-paid, so the price the client sees is the delivered price. DDP is the term a client with no import experience asks for, and it is the heaviest for us to price, because the duties and the clearance sit inside our number. Both change the lead time: the ocean leg is the same, but the clearance and the delivery attach to it.
What to state on the order
- The Incoterm and the named place — FOB port, CIF port, DAP or DDP place. The place is as important as the term.
- Who insures the container of glass, and at what cover level; the minimum cover of CIF is usually too thin for a full container of laminated lites.
- Who clears export and import, and who pays the duties — the split is what separates DAP from DDP.
- The named port the forwarder actually runs from, so the pack and the loading list match the box booked.
Questions
DDP if the client wants one delivered price and no customs work; otherwise CIF to the port and a local broker. An experienced importer usually prefers FOB and their own forwarder.