A practical guide to the eleven Incoterms 2020 rules — EXW, FCA, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP and FAS — used on every Bentech UK electrical export shipment leaving the UK for the Gulf, Africa and the Caribbean.
Incoterms — short for International Commercial Terms — are the three-letter trade rules maintained by the International Chamber of Commerce (ICC) that define who pays for freight, insurance, export and import clearance, and where risk transfers between seller and buyer in an international shipment.
Codes such as EXW, FOB, CIF, DAP and DDP appear on every Commercial Invoice and sales contract for cross-border electrical exports, so freight forwarders, customs brokers at the destination port and finance teams on both sides of the deal are working from the same script. Choosing the wrong Incoterm leads to queried invoices, containers waiting at the quay, and unbudgeted duties or VAT bills.
The current rulebook, Incoterms 2020, has been live since 1 January 2020. It covers every mode of transport Bentech UK uses into the GCC, Africa and the Caribbean — sea, air and road — and is the framework we quote against by default for UK electrical export.
Compare freight, insurance, customs clearance, duties and risk transfer for every Incoterms 2020 rule used on UK electrical exports.
Don’t let Incoterms confuse you. Contact Bentech UK Ltd, who have a wealth of experience in shipping electrical products globally.
A short, plain-English breakdown of every Incoterm — from EXW and FCA through to CIF, DAP and DDP — and how Bentech UK applies it to UK electrical export shipments.
Any transport mode
Ex Works (EXW) places the maximum obligation on the buyer. The seller simply makes the electrical goods available at their UK premises — typically our warehouse — and the buyer arranges collection, export clearance, freight, insurance and import duties. EXW gives the buyer total control of the supply chain but is rarely the right Incoterm for international electrical exports unless the buyer has a trusted UK forwarder.
Risk transfers: At seller's premises
Any transport mode
Free Carrier (FCA) is the modern, flexible alternative to EXW and FOB. Bentech UK handles UK export clearance and delivers the goods to a named carrier or terminal — for example a freight forwarder's warehouse or a UK port. Risk transfers when the goods are handed over. FCA works equally well for sea, air and road shipments out of the UK.
Risk transfers: On handover to the carrier
Any transport mode
Carriage Paid To (CPT) means Bentech UK pays the freight charges to a named destination, typically a port or inland depot in the GCC, Africa or the Caribbean. Risk, however, transfers to the buyer the moment the goods are handed to the first carrier in the UK. Insurance is the buyer's responsibility under CPT.
Risk transfers: On handover to the first carrier
Any transport mode
Carriage and Insurance Paid To (CIP) is CPT with marine or all-risk cargo insurance added. Under Incoterms 2020, CIP requires the seller to provide the higher Institute Cargo Clauses (A) cover. CIP is a strong choice for high-value electrical equipment moving by air or multimodal transport into the Gulf.
Risk transfers: On handover to the first carrier
Any transport mode
Delivered at Place (DAP) is one of Bentech UK's most-quoted Incoterms for door-to-door electrical export shipments. We arrange and pay for the entire journey to the buyer's named site — warehouse, project location or substation — but the buyer remains responsible for import clearance, duties and local VAT at destination.
Risk transfers: At destination, ready for unloading
Any transport mode
Delivered at Place Unloaded (DPU) is the only Incoterm that obliges the seller to unload the goods at destination. DPU is useful for project cargo and large electrical assemblies arriving by container or flatbed where unloading equipment must be coordinated by the seller's forwarder.
Risk transfers: At destination, after unloading
Any transport mode
Delivered Duty Paid (DDP) places maximum responsibility on Bentech UK: we cover freight, insurance, import clearance, duties and local taxes. DDP is only available on selected lanes because it requires us to act as importer of record in the destination country. Speak to our freight team to confirm whether DDP is feasible for your destination and product mix.
Risk transfers: At destination, ready for unloading
Sea & inland waterway only
Free Alongside Ship (FAS) is a sea-only Incoterm. Bentech UK delivers the goods alongside the vessel at a named UK port of shipment, having handled UK export clearance. Risk and freight then pass to the buyer. FAS is most relevant for breakbulk or oversized electrical equipment loaded directly from the quay.
Risk transfers: Alongside vessel at port of shipment
Sea & inland waterway only
Free on Board (FOB) is one of the oldest and most familiar Incoterms for ocean freight. Bentech UK delivers the cleared goods on board the vessel at a UK port; from that point onwards the buyer carries all risk and pays the ocean freight, insurance and import charges. FOB suits buyers with their own preferred shipping line.
Risk transfers: On board vessel at port of shipment
Sea & inland waterway only
Cost and Freight (CFR) is a sea-only Incoterm where Bentech UK books and pays the ocean freight to a named destination port — Jebel Ali, Dammam, Hamad, Sohar, Shuwaikh or Khalifa Bin Salman are typical examples — but risk transfers to the buyer once the goods are on board in the UK. The buyer arranges marine insurance.
Risk transfers: On board vessel at port of shipment
Sea & inland waterway only
Cost, Insurance and Freight (CIF) is Bentech UK's default Incoterm for ocean freight into the Gulf. We book the vessel, pay the freight to the named discharge port and provide minimum-cover marine insurance. The buyer takes care of import clearance, duties and onward delivery. CIF gives buyers a clean landed-port price for budgeting electrical projects.
Risk transfers: On board vessel at port of shipment
Tell us your destination port, project timeline and who you'd like to handle import clearance — Bentech UK will quote the right Incoterms 2020 freight option to match.
Talk to our freight team