Incoterms 2020 — Complete Guide for Food Export

EXWEx works — max buyer risk

FOBPort of loading — maritime

CIFDestination port — maritime

DDPDelivered duty paid

Incoterms® (International Commercial Terms) are the rules that define, in an international sales contract, who — seller or buyer — bears costs and risks at each stage of the logistics chain. Published by the International Chamber of Commerce (ICC) and revised in 2020, they are used in all food export contracts. At Martigane, we offer 4 main Incoterms configurations depending on client profiles.

Understanding Incoterms: the risk transfer principle

The central idea of Incoterms is simple: at what point does the risk of loss or damage to the goods pass from seller to buyer? And who pays what (transport, insurance, customs clearance) at each stage?

🏭 EXW — Ex Works

Risk transfers: when goods are made available at seller's premises.
Seller pays: nothing.
Buyer pays: everything — loading, transport, insurance, export AND import customs.

⚠️ Rarely used in practice as the buyer must handle export customs clearance in the seller's country.

🚢 FOB — Free On Board

Risk transfers: when goods are on board the vessel at the port of loading.
Seller pays: transport to port + export customs clearance.
Buyer pays: sea freight + insurance + import customs.

✅ The most widely used Incoterm in food export to Africa and the Middle East.

⚓ CIF — Cost Insurance Freight

Risk transfers: on board vessel at port of loading (same as FOB).
Seller pays: transport + maritime insurance to destination port.
Buyer pays: import customs + local transport.

✅ Widely used by African importers who want to control their CIF cost.

🚛 CPT — Carriage Paid To

Risk transfers: on handover to the first carrier.
Seller pays: transport to agreed destination.
Buyer pays: insurance (optional) + import customs.

💡 Multimodal equivalent of CFR. Used for international road transport.

📍 DAP — Delivered At Place

Risk transfers: at the agreed destination place.
Seller pays: everything except import customs and unloading.
Buyer pays: import duties + unloading.

💡 Standard for road deliveries FR-BE-UK.

🎯 DDP — Delivered Duty Paid

Risk transfers: at buyer's premises, duties paid.
Seller pays: absolutely everything — transport, insurance, export AND import customs, local VAT.
Buyer pays: nothing (or almost).

✅ The turnkey solution for importers new to international trade.

Which Incoterm does Martigane recommend for your profile?

You are an experienced African importer → FOB

If you have your own local freight forwarders and good customs clearance mastery in your country, FOB is your best ally. You retain full control over freight cost and maritime insurance.

You are new to importing or want simplicity → CIF or DDP

For a first import order, CIF destination port is the balanced solution: Martigane manages maritime freight and insurance, you only handle local customs clearance. DDP is the ultra-simplified solution — you receive the goods directly in your warehouse, Martigane has handled everything.

You are in Europe (FR, BE, UK) → DAP

For European clients, Martigane most often delivers DAP client's warehouse. You receive the goods at your address, transport and insurance are included in our prices.

📋 Quick reference summary

EXW: minimum seller service — ❌ not recommended for beginners
FOB: loading port — ✅ Africa export standard for experienced importers
CIF: destination port, freight + insurance included — ✅ recommended for first imports
DAP: destination warehouse, excluding duties — ✅ European deliveries standard
DDP: destination warehouse, all inclusive — ✅ turnkey solution for beginners

The 5 most common Incoterms mistakes in food export

Choosing EXW when you cannot manage export customs clearance — the buyer must clear customs in France, which they often cannot legally do without a fiscal representative.
Confusing CIF with DAP — in CIF, risk passes on board the vessel (not at delivery!). The buyer is responsible from the moment the ship sets sail.
Not specifying the exact destination port — "CIF West Africa" is invalid. You must specify CIF Dakar, CIF Abidjan, etc.
Forgetting unloading costs in DAP — in DAP, unloading charges at the destination are at the buyer's expense.
Underestimating import duties in DDP — in DDP, the seller pays local duties and must accurately anticipate them to protect margins.

✅ Martigane's Incoterms expertise

Martigane masters all 2020 Incoterms and can tailor the configuration to each client and each destination. We manage French export customs clearance, pre-carriage to port, maritime freight booking and cargo insurance subscription.

Do you have a food export project?

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Incoterms 2020: the complete guide for food export