Reviewed against ICC Incoterms® 2020 rules: August 2026. Incoterms® define important delivery, transport, cost, risk and customs responsibilities between seller and buyer. They do not replace a complete sales contract and they do not by themselves decide product ownership, payment terms, product compliance or every tax issue.
For custom toy orders, the biggest mistake is treating EXW, FOB and DDP as simple price levels. Each term changes where delivery happens, when risk transfers and who is responsible for particular transport and customs tasks.
Quick comparison for toy buyers
| Rule | Delivery / risk point | Customs responsibility | Best use |
|---|---|---|---|
| EXW | Seller places goods at buyer’s disposal at the named place; seller does not have to load the collecting vehicle. | Buyer handles export clearance where applicable and import clearance. | Usually better suited to domestic trade or buyers able to manage origin logistics directly. |
| FCA | Seller delivers to the carrier or other person nominated by the buyer at the named place; risk transfers there. | Seller handles export clearance; buyer handles import clearance. | Often a cleaner international option than EXW, including container, air and multimodal shipments. |
| FOB | Seller delivers when the goods are on board the buyer-nominated vessel at the named port of shipment. | Seller handles export clearance; buyer handles import clearance. | Sea or inland-waterway shipments where delivery is actually on board the vessel. |
| CIF | Risk transfers when goods are on board at the port of shipment, although seller pays cost, freight and required insurance to the named destination port. | Seller handles export clearance; buyer handles import clearance. | Sea or inland-waterway shipments to a named destination port. |
| DAP | Seller bears risk to the named destination, with goods on the arriving means of transport ready for unloading. | Buyer handles import clearance and applicable import duties/taxes. | Door or warehouse delivery where the buyer can act as importer. |
| DDP | Seller delivers at the named destination, cleared for import and ready for unloading. | Seller is responsible for export, transit and import clearance and applicable duties/taxes under the rule. | Only when the seller can legally and operationally perform the destination import obligations. |
EXW is not automatically the simplest international term
Under EXW, delivery can occur at the seller’s factory or warehouse without the seller loading the collection vehicle or clearing the goods for export. That can create practical problems when the overseas buyer cannot directly complete export formalities in the seller’s country.
For international toy shipments where the seller can handle export clearance and hand the goods to a nominated carrier, FCA is often structurally cleaner than EXW.
Do not use FOB as a generic word for every export shipment
FOB is an Incoterms® rule for sea or inland-waterway transport. Delivery and risk transfer occur when the goods are on board the nominated vessel at the named port of shipment. ICC specifically notes that FOB is not appropriate where goods are handed to the carrier before they are on board the vessel, such as at a container terminal; FCA should be considered in that case.
CIF cost and risk move at different points
With CIF, the seller arranges and pays for cost, freight and the required insurance to the named destination port, but delivery and risk transfer occur when the goods are placed on board the vessel at the port of shipment. Buyers should not assume the seller carries transport risk all the way to destination simply because the seller pays the freight.
DAP and DDP are not the same as “door-to-door”
Under DAP, the seller bears the transport risk to the named destination but the buyer is responsible for import clearance and applicable import duties or taxes. Under DDP, the seller must also handle import clearance and the associated duties/taxes required by the rule.
DDP should therefore be used only when the seller can lawfully perform the import obligations in the destination country. If the seller cannot obtain import clearance, ICC’s guidance points toward DAP or DPU rather than pretending a delivery service is DDP.
Always write the named place or port
A proper quotation or proforma invoice should not say only “FOB,” “DAP” or “DDP.” It should identify the exact named place or port and the rules version, for example:
- FCA Shantou, China — Incoterms® 2020
- FOB Shenzhen, China — Incoterms® 2020
- DAP buyer warehouse, Madrid, Spain — Incoterms® 2020
- DDP named warehouse, subject to confirmed import route — Incoterms® 2020
What to compare before accepting a custom toy quote
- Exact Incoterms® rule and named place/port.
- Where delivery occurs and where risk transfers.
- Who books the main carriage.
- Who handles export, transit and import formalities.
- Whether duties, taxes, brokerage and destination charges are included.
- Who is responsible for unloading.
- Carton dimensions, gross weight and chargeable weight assumptions.
- Insurance obligation and coverage where relevant.
- Validity period of freight and duty estimates.
Official ICC references
- ICC Incoterms® 2020 rules for any mode: EXW, FCA, DAP, DDP and others
- ICC Incoterms® 2020 rules for sea and inland waterway: FOB, CFR, CIF and others