Understanding Incoterms 2020: Selecting FOB, CIF, or DDP for B2B Buyers
An in-depth breakdown of risk transfers, freight management responsibilities, and tax liabilities under standard B2B shipping terms.
1. Why Incoterms Matter in Cost Structuring
Incoterms define the exact point where risk, costs, and transport responsibilities shift from the seller to the buyer. Choosing the wrong Incoterm can lead to unexpected shipping charges and insurance disputes.
For B2B industrial buyers, FOB (Free on Board), CIF (Cost, Insurance, and Freight), and DDP (Delivered Duty Paid) are the most common agreements. Each impacts the calculation of your customs valuation differently.
Sanjay and the compliance advisory group at KSP Global verify international tariff HS structures, coordinate with CPRI/ERDA testing foundries, and manage regulatory filings with standard BIS and WPC wings.