Costs and taxes
Incoterms Explained: FOB, CIF, EXW and DDP – Who Pays for What
Three letters in a quote determine who pays for transport, who insures and who is responsible if something is damaged on the way. A simple explanation of the common terms.
International sales terms determine where responsibility passes from seller to buyer, and who bears each cost along the way. Two quotes for the same amount can be very different if one is EXW and the other CIF.
To compare quotes, bring them to the same sales term first, and only then look at the price.
What the full guide will cover
- The four common terms and what each one means
- Where the risk transfers and who insures
- How to compare quotes under different sales terms
- Which term suits an Israeli importer, and when
The full guide is being written. Have a question on this topic right now? Send us your product details and we'll get back to you with an answer.
On this topic on our site:Procurement and import management
More guides
How Much Does It Cost to Import Goods into Israel? A Full Cost Calculation, from Factory to WarehouseThe product price is only one line. Shipping, insurance, customs duty, purchase tax, VAT, customs brokerage, port fees and standards: every cost component and how to calculate it.
Calculating Customs on Commercial Imports: Duty, Purchase Tax and VAT in a Full ExampleThree different taxes, each calculated on a different basis. How to find the product's customs tariff item and how to reach the final amount.
Commercial Import for Businesses: The Complete Step-by-Step GuideHow to import goods into Israel without the headaches: finding a supplier, samples, payment, shipping, standards, customs and taxes. A practical step-by-step guide.