Choosing Incoterms for Brass Component Imports from India

When we quote a brass program for an overseas customer, the Incoterms we quote against move the landed cost up or down by 8–15% depending on the route. This short note is for sourcing engineers and buyers who don't live in trade compliance every day, and want a working understanding of which Incoterms to ask for and when.

EXW — Ex Works

EXW means the goods are made available at our factory gate in Jamnagar. The buyer organises and pays for everything from there — Indian export documentation, road haulage to the port, ocean freight, insurance, customs at destination, and final delivery. Cheapest headline price; most operational burden. Suitable only if the buyer has a forwarder with Indian export capability.

FOB — Free on Board

FOB means we deliver the goods onto the vessel at an Indian port (typically Mundra or Pipavav). We pay road haulage, Indian export clearance, and loading. The buyer pays ocean freight, insurance, and everything past loading. Most common default for B2B brass exports from India.

CIF — Cost, Insurance & Freight

CIF means we deliver and pay for ocean freight and insurance up to the destination port. Buyer pays destination customs and onward delivery. Useful when the buyer doesn't have a preferred freight forwarder, or wants a single-line landed-to-port price.

DAP — Delivered at Place

DAP means we deliver to the buyer's nominated address — factory, warehouse, distribution centre — with everything except destination import duties and taxes included. Most expensive headline price, fewest surprises. Suitable when the buyer wants total predictability and is willing to pay for it.

Which to pick

For most overseas OEMs and distributors, FOB Mundra or FOB Pipavav is the sensible default — it gives the buyer freight-rate flexibility and keeps the supply chain on familiar ground. Switch to CIF or DAP when total-cost predictability matters more than per-shipment optimisation, or when the buyer doesn't already have an Indian forwarder.