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Incoterms 2020

Incoterms 2020 reference for international commodity trade with Egypt. Full breakdown of all 11 Incoterms: EXW, FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR, CIF — when each is appropriate, who pays, who bears risk.

Incoterms (International Commercial Terms) are an ICC-published 11-term framework that defines responsibilities between seller and buyer in international trade. Every Sales Contract and Letter of Credit must reference a specific Incoterm + named place.

Egypt Globe Group quotes on all 11 Incoterms 2020. Default unless otherwise specified: CIF for sea freight, DAP for road freight.

02

The 11 Incoterms 2020

Group 1: Any mode of transport (7 terms)

EXW — Ex Works

Seller delivers
at their premises (factory, warehouse) — buyer takes over from there
Buyer pays
loading, export clearance, freight, insurance, import clearance, all transport
Use when
experienced buyer with their own freight forwarder + Egyptian customs broker
Egypt note
rarely used because the buyer needs an Egyptian-registered entity to handle export customs (GOEIC + Chamber of Commerce stamps)

FCA — Free Carrier

Seller delivers
to a named carrier (e.g. seller's warehouse, port terminal, named third-party warehouse)
Seller pays
export clearance, transport to named place, loading IF at seller's premises
Buyer pays
main carriage, insurance, import clearance
Use when
containerised cargo where buyer has freight forwarder relationship; common for FCL bookings via SCAC carrier code

CPT — Carriage Paid To

Seller delivers
to first carrier; risk passes at that point
Seller pays
main carriage to named destination
Buyer pays
insurance (recommended), import clearance, on-carriage from destination
Use when
road or rail freight, multi-leg transport

CIP — Carriage and Insurance Paid To

  • Like CPT but seller arranges insurance to named destination
  • 2020 update: minimum insurance now Institute Cargo Clauses (A) — full all-risks (previously Clause C minimum)
  • Use when: containerised or multi-modal with insurance burden on seller

DAP — Delivered At Place

Seller delivers
to named place, ready for unloading (still on transport vehicle)
Seller pays
all transport to destination
Buyer pays
unloading, import clearance + duty + VAT
Use when
road freight to land-locked destinations; common for GCC truck deliveries from Egypt

DPU — Delivered at Place Unloaded

  • Like DAP but seller also unloads at destination
  • Use when: heavy bagged cargo where seller arranges crane / forklift at destination terminal

DDP — Delivered Duty Paid

Seller delivers
to named place, paid all duties + import clearance
Use when
B2C-like trades where buyer wants zero customs friction; most onerous for seller
Egypt note
requires seller to have local representation in destination country for VAT/duty payment

Group 2: Sea + inland waterway only (4 terms)

FAS — Free Alongside Ship

Seller delivers
cargo to alongside the vessel at named port of loading
Seller pays
export clearance, transport to port-side
Buyer pays
loading onto vessel, freight, insurance, all from-there
Use when
niche — heavy/oversized cargo where buyer has separate stevedoring contract

FOB — Free On Board

Seller delivers
cargo onto the vessel at named port of loading
Seller pays
export clearance, port handling, loading onto vessel (cost passes when cargo crosses ship's rail)
Buyer pays
freight, insurance, all from-vessel-deck onwards
Most common term for bulk vessel + container shipments

CFR — Cost and Freight (sometimes CNF)

  • Like FOB but seller pays main freight to named port of destination
  • Buyer pays: insurance (recommended), import clearance, on-carriage
  • Use when: buyer wants delivered-to-destination pricing but arranges own marine insurance

CIF — Cost, Insurance and Freight

  • Like CFR but seller pays both freight AND insurance to named port of destination
  • 2020 update: minimum insurance Institute Cargo Clauses (C) (basic risks only — different from CIP which is now Clauses A)
  • Most common term for trade through L/C: banks usually insist on CIF since insurance + freight are both in seller's control
03

Quick decision table

Buyer wantsRecommended IncotermReason
Cheapest possible price, handles own logisticsEXW or FOBLowest seller responsibility
Standard L/C-compliant pricingCIFBank-friendly, complete picture
Delivered to destination port, no surprisesCFR or CIFSeller controls freight
Containerised, multi-modalFCA or CIPModern container-era equivalents
Road delivery to GCC / North AfricaDAPTrucked, unloaded by buyer
Zero hassle, everything doneDDPSeller handles all customs + duty
Massive bulk vessel (50k+ MT)FOBBuyer arranges vessel charter
04

Common pitfalls

Don't conflate Incoterm with payment terms

Incoterms govern delivery + risk + cost split. Payment terms (T/T advance, sight L/C, usance L/C, D/P, D/A) are separate and negotiated independently.

Insurance under CIF is minimal

CIF includes only Institute Cargo Clauses (C) minimum — basic FPA cover (fire, sinking, collision, jettison, general average). Doesn't cover theft, leakage, contamination. Most B2B buyers require CIF + Institute Cargo Clauses (A) uplift (all-risks) — quote separately or use CIP instead.

"FOB" with no port = ambiguous

Always specify: FOB Damietta, FOB Alexandria, FOB Ain Sokhna, etc. The named port matters — handling costs and inland transport vary significantly.

DDP to certain countries is impractical

DDP requires the seller to be the importer of record. For most countries this means having a local entity, tax registration, EORI number, etc. Not always feasible. Confirm before quoting DDP.

05

How Egypt Globe Group quotes

Default quote = FOB Damietta + freight indication + CIF total. We let you pick whichever Incoterm matches your procurement workflow.

Single-source consolidation: if you're combining multiple commodities into one vessel/container, we quote everything against the same Incoterm to simplify your L/C.

Request a quote on your preferred Incoterm →
View HS code reference →

06

Quality at the Core — the verification behind the reference

The figures on this page are reference data; the cargo itself is verified lot by lot. Egypt Globe Group was incorporated in 2014 with a dedicated internal Quality Assurance division, and every consignment passes five verification gates between the source and the buyer's arrival laboratory. Specification is guaranteed at the port of loading and binding under the sales contract.

Verification chain5 gates · every consignment
  1. 1

    Gate 1

    Extraction / source

    EvidenceSource sampling on every production lot

    Source laboratory · per lot

  2. 2

    Gate 2

    Processing

    EvidenceWashing, screening, drying, grading or milling verified against the contract specification

    Plant QC · per batch

  3. 3

    Gate 3

    Port laboratory

    EvidenceFull analysis against the contract specification; Certificate of Analysis or Mill Test Certificate issued before the Bill of Lading

    EGG port QC lab · per shipment

  4. 4

    Gate 4

    Independent inspection

    EvidencePre-shipment sampling, witness testing, draft survey or tally; sealed retained samples held 90 days

    TÜV Austria / SGS / Intertek / BV · per vessel

  5. 5

    Gate 5

    Destination acceptance

    EvidenceCoA cross-referenced with the buyer's arrival laboratory; retained samples arbitrate any variance

    Buyer laboratory · on discharge

Contents· 6 sections
  1. 01Overview
  2. 02The 11 Incoterms 2020
  3. 03Quick decision table
  4. 04Common pitfalls
  5. 05How Egypt Globe Group quotes
  6. 06Quality at the Core — the verification behind the reference
Priced offers

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FOB / CIF / CFR pricing from 7 Egyptian ports — turnaround once stock, laycan and freight are confirmed.

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Frequently asked questions

What are the 11 Incoterms 2020?
Seven apply to any mode of transport — EXW, FCA, CPT, CIP, DAP, DPU and DDP — and four to sea and inland waterway only: FAS, FOB, CFR and CIF. Every Sales Contract and Letter of Credit must reference a specific Incoterm plus a named place.
Which Incoterm suits a bulk vessel shipment?
FOB is the most common term for bulk vessel and container shipments, and for a massive bulk parcel of 50k+ MT it lets the buyer arrange the vessel charter. CIF is the most common term for trade through a Letter of Credit, because banks usually insist on it when freight and insurance are both in the seller's control.
What changed on insurance in Incoterms 2020?
CIP now requires minimum cover under Institute Cargo Clauses (A) — full all-risks, where the previous minimum was Clause C. CIF's minimum stays at Institute Cargo Clauses (C), basic risks only, which is the difference between the two terms.
Which Incoterms does Egypt Globe Group quote on?
All 11 Incoterms 2020. Unless otherwise specified the default is CIF for sea freight and DAP for road freight.
Why is EXW rarely used on an Egyptian export?
Under EXW the buyer takes over at the seller's premises and handles export clearance — which in Egypt means the buyer needs an Egyptian-registered entity to obtain the GOEIC and Chamber of Commerce stamps. FOB or FCA is normally used instead.

Other questions? Email our export desk — the export desk replies to every request.