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Incoterms for Sweets: EXW, FOB, CIF, DDP

Incoterms decide who pays, who arranges transport, and when risk transfers. For confectionery like baklava, the best choice is the one that prevents paperwork gaps, protects freshness, and matches your buyer’s customs capability.

Baklava Academy • Article 15 • Updated • For importers, retailers, and hospitality brands.

Air & sea Cost clarity Risk control Customs planning
Export-ready • Logistics clarity
Incoterms for Sweets: EXW, FOB, CIF, DDP — Baklava Academy featured image

Incoterms, explained like a shipping checklist

Every shipment has three “money buckets”: origin (pickup/export), main carriage (air/sea), and destination (customs + last mile). Incoterms decide which party owns each bucket.

Key takeaways

  • EXW gives the buyer maximum control—but can create export-document risk for first-time importers.
  • FOB/CIF are sea-focused. For air shipments, FCA/CIP often fit better.
  • DDP looks “easy” for the buyer, but it’s operationally heavy for the seller (duties, VAT, importer rules).
  • Always write the term with a named place: e.g., “FOB Mersin Port” or “DAP Berlin, DE (Incoterms® 2020)”.

Quick chooser

  • Buyer has strong broker + freight contracts: FCA (air/sea) or FOB (sea only).
  • Buyer wants predictable landed logistics (but will clear customs): DAP / DPU.
  • Buyer wants seller to handle main carriage: CIP (air/sea) or CIF (sea only).
  • Buyer insists on “all-in” pricing: DDP (only if you can manage local duties/taxes compliantly).

EXW — Ex Works

Seller does: make goods available at their premises (factory/warehouse).
Buyer does: pickup, export clearance (in many cases), main carriage, import clearance, duties/taxes, last mile.

When EXW works

  • Buyer has a trusted freight forwarder in Turkey and can handle export formalities.
  • Buyer wants maximum control over routing, cold chain (if any), and consolidation.

EXW risk for food shipments

  • Export paperwork may be incomplete or delayed if the buyer’s side is inexperienced.
  • Pickup timing issues can affect freshness and storage conditions.

Cleaner alternative: consider FCA (seller clears for export and hands over at a named place).

FOB — Free On Board (sea freight)

Seller does: deliver goods on board the vessel at the named port of shipment, export clearance.
Buyer does: ocean freight, insurance (optional), import clearance, duties/taxes, destination delivery.

FOB is best for

  • Container shipments where the buyer controls the ocean booking.
  • Buyers consolidating multiple suppliers into one container.

Avoid using FOB for air shipments; use FCA instead.

CIF — Cost, Insurance & Freight (sea freight)

Seller does: export clearance + pays ocean freight to destination port + provides insurance (minimum coverage).
Buyer does: import clearance, duties/taxes, terminal fees at destination (as applicable), onward delivery.

Why buyers like CIF

  • One simpler quote: product + main freight bundled.
  • Fewer moving parts on first sea shipments.

For air shipments, the close cousin is CIP (not shown in the title, but commonly used for sweets by air).

DDP — Delivered Duty Paid

Seller does: almost everything—delivery to named place in buyer’s country, including import clearance and payment of duties/taxes.
Buyer does: receives goods.

DDP reality check (food)

  • Requires tight coordination with a local customs broker.
  • Taxes/VAT and importer-of-record rules can be complex.
  • If mis-scoped, DDP can create surprise costs or compliance headaches.

If the buyer wants “delivered to door” without seller paying duties/taxes, consider DAP.

Common mistakes (and fixes)

  • Missing named place: write “FOB Mersin Port” (not just “FOB”).
  • Using FOB for air: switch to FCA Ankara or your agreed handover point.
  • Confusing cost vs risk: with CIF/CIP, seller pays freight, but risk can transfer earlier (check the rule details and your contract wording).
  • DDP without local capability: use DAP/DPU unless you truly control duties/taxes and broker process.

Copy-paste contract lines

Short form

Delivery terms: [INCOTERM] [Named Place] (Incoterms® 2020). Title and risk transfer per Incoterms® 2020.

With shipping notes (recommended)

Delivery terms: [INCOTERM] [Named Place] (Incoterms® 2020). Packaging: export cartons + palletization as agreed. Documents: commercial invoice, packing list, COO (if required), COA + allergen statement. Shipment release upon approval of AWB/B/L draft.

FAQ

If I’m shipping baklava by air, which terms should I consider?

Typically FCA (buyer controls freight) or CIP (seller pays main carriage + insurance). Terms like FOB/CIF are sea-oriented.

What’s the safest term for “first shipment” relationships?

Many exporters start with FCA (clean export handover) or DAP (delivered to buyer door, buyer clears import), because both reduce ambiguity while keeping duties/taxes on the buyer side.

How do Incoterms affect pricing?

Your unit price should reflect which buckets you’re covering (origin, main carriage, destination). Always separate “product price” and “freight/delivery adders” in quotes so buyers can compare fairly.

Related: Export Documents ChecklistLogistics & Export