Incoterms 2020 cheatsheet for aluminum buyers
All 11 rules in one glance. Risk transfer, cost transfer, who handles customs, when insurance kicks in. Built specifically for B2B aluminum buyers importing from China.
Risk, cost & customs at a glance
| Code | Name | Mode | Risk transfer | Cost transfer | Carriage | Insurance | Export customs | Import customs |
|---|---|---|---|---|---|---|---|---|
| EXW | Ex Works | Any | Seller's premises | Seller's premises | Buyer | Buyer | Buyer | Buyer |
| FCA | Free Carrier | Any | Named place (carrier) | Named place | Buyer | Buyer | Seller | Buyer |
| CPT | Carriage Paid To | Any | First carrier | Named destination | Seller | Buyer | Seller | Buyer |
| CIP | Carriage & Insurance Paid | Any | First carrier | Named destination | Seller | Seller (ICC A) | Seller | Buyer |
| DAP | Delivered at Place | Any | Named destination | Named destination | Seller | Seller | Seller | Buyer |
| DPU | Delivered at Place Unloaded | Any | Unloaded at destination | Unloaded | Seller | Seller | Seller | Buyer |
| DDP | Delivered Duty Paid | Any | Named destination | Named destination (duty paid) | Seller | Seller | Seller | Seller |
| FAS | Free Alongside Ship | Sea only | Alongside vessel | Alongside vessel | Buyer | Buyer | Seller | Buyer |
| FOB | Free On Board | Sea only | On board vessel | On board vessel | Buyer | Buyer | Seller | Buyer |
| CFR | Cost and Freight | Sea only | On board vessel | Destination port | Seller | Buyer | Seller | Buyer |
| CIF | Cost, Insurance & Freight | Sea only | On board vessel | Destination port | Seller | Seller (ICC C min) | Seller | Buyer |
Who pays what (FOB / CIF / DAP / DDP)
The four most common Incoterms for China→anywhere aluminum imports. Use this to compare quotes apples-to-apples.
● = seller pays · dash = buyer pays
Common Incoterm questions for aluminum
What's the difference between FOB and CIF for aluminum?
With FOB, the Chinese mill pays to load the container on the ship at the origin port; the buyer takes risk and cost from that moment. With CIF, the mill also pays for ocean freight and basic insurance to the destination port. Most Chinese mills quote FOB Shanghai by default — CIF quotes are often 3-5% higher.
Why do aluminum buyers prefer FOB over DDP?
With DDP, the Chinese seller takes on destination customs + duty risk — which they often price conservatively (markup) to cover unknowns. FOB lets experienced importers use their own freight forwarder, which is typically 8-15% cheaper net.
Which Incoterm should a first-time importer use?
If you have a trusted local customs broker, FOB gives you the best cost control. If you don't, DAP (Delivered at Place) is safer — the seller handles everything except import clearance, which your broker handles. Avoid DDP unless the seller is experienced in your destination country's customs regime.