Incoterms 2020: which delivery term to choose for a sale to Russia
Incoterms define who pays for transport and insurance and at what moment the risk passes to the buyer. The popular terms explained simply — from the viewpoint of both the Russian importer and the supplier.
Why Incoterms matter
Incoterms are international rules that allocate between seller and buyer the obligations for transport, insurance and customs clearance and set the moment of risk transfer. Stating the term in the contract prevents disputes: each side knows to which point and at whose expense the goods travel.
Incoterms 2020 remains the current edition. For the importer, the chosen term directly affects the total cost and the area of responsibility; for you as a supplier, it determines what you must organise and pay for. It deserves a deliberate choice.
Popular terms for deliveries to Russia
| Term | Seller’s side | Buyer’s side |
|---|---|---|
| EXW (Ex Works) | Makes the goods available at its warehouse | Everything else; the lowest goods price but full logistics for the importer |
| FCA (Free Carrier) | Hands the goods to the buyer’s carrier | Main carriage onwards; a convenient, balanced option |
| FOB | Loads the goods on the vessel; risk passes after loading | Sea freight and onwards |
| CIF | Also pays freight and insurance to the port of destination | From the port of destination |
| DAP (Delivered at Place) | Delivers to the agreed place | Import clearance and charges |
| DDP (Delivered Duty Paid) | Maximum responsibility, including duties | Unloading |
How to choose the term
The more obligations the seller takes on (DAP, DDP), the higher the price of the goods, but the simpler the logistics for the importer. EXW and FCA give control over the route and savings, but require an experienced forwarder. For most importers FCA or FOB, together with a reliable logistics partner, are optimal.
From the supplier’s side, FCA has a practical advantage over EXW: export clearance is your responsibility, so the EX1 — your proof of export for VAT zero-rating — is under your control. If you lack the resources to lodge it, we can do it for you remotely or at our Rotterdam warehouse. We help choose the term for your deal and handle transport and customs clearance from any agreed point.
Questions and answers
Which terms are usually optimal for supplies to Russia?
FCA or FOB, together with a reliable logistics partner, suit most deals.
Under DAP, who pays import clearance?
The buyer. The seller delivers to the agreed place, but import clearance and charges remain with the buyer.
Why is EXW problematic for export?
Because the buyer outside the EU is responsible for export clearance but cannot act as declarant there; a local customs agent is needed.
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