Incoterms define who pays for freight, insurance, and risk transfer between seller and buyer. Choosing the wrong term can inflate landed cost or create compliance gaps.
FOB (Free on Board): the seller delivers goods on board the vessel at the origin port. The buyer arranges main carriage and insurance from that point.
CIF (Cost, Insurance, Freight): the seller covers cost, insurance, and freight to the named port of destination. Risk transfers when goods are on board at origin — popular for first-time importers.
DAP (Delivered at Place): the seller delivers to a named place in India; the buyer handles import clearance and duties. Useful when you want a door-oriented quote.
Match the Incoterm to your experience level, insurance needs, and who will manage customs clearance at Chennai or your inland destination.