Delivery terms when selling durian to China
Delivery terms say who bears cost and risk at each leg. For fresh goods moving by road, choosing the wrong term or stating it vaguely is a common source of disputes.
What delivery terms are
Incoterms are international rules published by the International Chamber of Commerce (ICC). They describe when risk passes from seller to buyer and who bears the cost of transport, insurance and clearance. The parties should state the term together with a specific place in the contract.
Terms commonly used for road transport
- FCA (Free Carrier): the seller delivers the goods, cleared for export, to the carrier named by the buyer at the agreed place.
- CPT (Carriage Paid To): the seller pays freight to the destination, but risk passes to the buyer when the goods are handed to the first carrier.
- DAP (Delivered at Place): the seller bears cost and risk to the agreed destination, not including import clearance.
- DDP (Delivered Duty Paid): the seller bears all costs and risks, including import clearance and duties.
Choosing a suitable term
- Decide which party is better placed to handle formalities and risk at each leg.
- Consider that goods are fresh: waiting time at the border affects quality.
- State the place of delivery clearly (for example a warehouse, the border crossing or a receiving point in China).
- Agree how receipt and acceptance are confirmed at the point where risk passes.
Notes
A delivery term only settles cost and risk; it does not replace clauses on quality, acceptance and payment. Put everything in the contract and seek professional advice where needed.
Frequently asked questions
Which term suits fresh durian moving by road?
There is no fixed choice. Depending on each party's capability and the nature of the goods, parties often consider FCA, CPT or DAP and name a specific place.
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