Export Terms Dictionary: What is FOB, CIF, DAP? Which to Choose?
When importing heavy machinery attachments or spare parts, shipping costs and responsibilities are as important as the product price. Incoterms determine where the responsibility for the cargo ends.
At HKM, we offer the most suitable logistics solutions for our customers. Here are the most commonly used terms:
1. EXW (Ex Works)
Your carrier picks up the product from our warehouse (Istanbul/Turkey). All customs and shipping costs are yours. Usually preferred by large companies with their own logistics agreements.
2. FOB (Free on Board)
We clear customs and load the product onto the ship (or plane). Freight and costs in the destination country are yours. Most common in sea freight.
3. DAP (Delivered at Place)
The most preferred method. We deliver the product to your door. You only pay the import tax in your country and receive the goods. You don't deal with shipping stress.
4. Which Method Should You Choose?
| Term | HKM's Responsibility | Customer's Responsibility |
| EXW | Packaging Only | Everything (Shipping, Customs, Insurance) |
| CIF | To Port + Insurance | Port Charges + Import Duty |
| DAP | To Your Door | Import Duty Only |
Frequently Asked Questions (FAQ)
Q: Who should arrange insurance?
A: In CIF agreements, we (HKM) handle the insurance. In FOB or EXW agreements, insurance responsibility is yours once the goods leave the factory or port.
Q: Which shipping mode is cheaper?
A: Air Freight is best for under 100 kg. Sea Freight (LCL) is most economical for heavier, non-urgent loads. For Europe, Road Freight is the fastest and most affordable solution.
Logistics Support
Contact our export department to decide which delivery term suits you best.
Email: info@hkm.com.tr