Choose the term from the physical delivery point and responsibilities each party can perform. Write the exact place and “Incoterms® 2020” into the contract. These rules allocate delivery obligations and risk; they do not establish WTBF freight prices or available services.
Map the route and delivery point
List factory collection, terminal, main transport, import clearance and warehouse. Identify who books each movement. Delivery and risk normally transfer at the points summarized below; consult the complete selected rule and any agreed changes.
| Arrangement | Term to discuss | Delivery point |
|---|---|---|
| Buyer arranges factory collection | FCA, named premises | Loaded onto buyer-arranged collecting vehicle |
| Seller brings goods to another carrier location | FCA, named location | On seller's vehicle, ready for unloading to buyer-nominated carrier or person |
| Seller places goods aboard the vessel | FOB, named shipment port | On board at the agreed port |
| Seller transports goods to destination | DAP, named destination | On arriving vehicle, ready for unloading |
See ICC's FCA and DAP rules and FOB rules. Sources checked: 2026-10-31.
Resolve the common mismatches
FOB is for sea or inland waterway transport, not air courier. ICC recommends considering FCA where carrier handover occurs before on-board delivery, such as a container terminal. The eventual sea journey alone does not determine the right term.
Under DAP the buyer handles import clearance and duties, and normally unloading; unloading costs can also depend on the carriage contract. Identify importer, broker, documents and receiving contact before booking. Ask the broker to confirm destination requirements; no duty rate or importer eligibility is assumed.
Compare quotations to the same receiving point
A garment price and a transport-inclusive price cannot be compared until their scopes are aligned. Ask each party to identify the named place, the services included and the costs still requiring a quotation. Use the same garment quantity and proposed packing basis, and mark dimensions or weights as provisional until they have been confirmed.
| Planning field | Question that makes the quotation usable |
|---|---|
| Collection | Which exact site, contact, loading arrangements and notice are assumed? |
| Origin handling | Which carrier handover, terminal services and document charges are quoted? |
| Main movement | Which mode, route assumptions and booking party apply? |
| Destination | Is the named point a terminal, a warehouse or another location? |
| Import process | Who appoints the broker and confirms documents and payable charges? |
| Receiving | Who arranges the appointment, access and unloading resources? |
| Exceptions | Which waiting, storage, redelivery or optional services remain unpriced? |
This is a purchasing worksheet, not a replacement for the selected rule or contract. Some headings may be included in a quoted service and others separately billed. Ask the provider to explain the scope rather than adding the same cost twice. Keep insurance quotations and cover details identifiable; do not assume that a transport price alone demonstrates suitable cover.
Turn an address mismatch into a clear decision
Imagine a buyer comparing a proposal that ends at a destination terminal with one that reaches its distribution warehouse. Both proposals name the same city, but they do not deliver the same operational result. The buyer asks the forwarder to quote the remaining movement, terminal release requirements and warehouse appointment for the terminal option.
The warehouse option also needs verification. The receiving team confirms the entrance, vehicle access, appointment procedure and who can unload. If the proposed vehicle or receiving hours do not fit that arrangement, the parties resolve the service before booking. A complete street address is useful but does not by itself establish that the warehouse can accept the shipment as planned.
Only after these gaps are resolved should the buyer compare the total quoted scope and remaining uncertainties. If a figure is unknown, label it as unquoted instead of treating it as zero. This approach exposes an incomplete comparison without inventing freight rates, tax rates or a universal cheaper term.
Keep the handover plan separate from the product approval
Put the style references, quantities, carton identification and packing revision in the shipment brief. Check that the purchase order, packing information and broker instructions describe the same goods. Ask the broker or forwarder which documents and notices are needed for this shipment, and agree who will provide each item and by when.
Distinguish goods-ready, carrier collection, dispatch and warehouse arrival milestones. Ask which depend on sample approval, packing confirmation or transport booking. Record the basis of an estimated arrival and how changes will be communicated; choosing a delivery term does not turn a provisional production schedule into a guaranteed arrival date.
At receipt, keep the delivery record and any visible package observations with the shipment identity. A product discrepancy needs comparison with the approved specification and the agreed claims process; a transport incident needs the corresponding transport evidence and timely communication with the responsible service providers. Preserve both records when the cause is uncertain instead of deciding responsibility from a short term printed on the invoice.
Before final acceptance of the commercial proposal, have the supplier, buyer and relevant service providers resolve any conflicting instructions. The practical output should be one identifiable delivery plan with owners for open actions, not several emails that use the same acronym for different expectations.
Close the quotation
Use a full address and precise handover point, not merely a city. Hypothetical example: a terminal named in a proposal does not satisfy a buyer expecting warehouse delivery without revising the destination or arranging onward transport.
Confirm carrier booking, notices, documents, insurance arrangements, handling charges and appointments. Agree payment, product acceptance, dispatch and arrival separately. Send quantity, packing, addresses, transport preference and arrival requirement through the WTBF inquiry. Obtain confirmed service scope, route and packing dimensions before comparing transport quotations.