Importing
Incoterms for First-Time Importers
Four Incoterms cover almost every apparel shipment. Knowing which one you agreed to prevents the most common invoicing dispute.
An Incoterm defines exactly where the seller's responsibility ends and yours begins. It is not a shipping method; it is an allocation of cost and risk.
The four you will actually use
EXW (Ex Works) — you collect from the factory door. Maximum control, maximum administration, and you handle export clearance in a country you may not know well.
FOB (Free On Board) — the supplier delivers to the port and clears for export. You take over once goods are loaded. The standard starting point for most importers.
CIF (Cost, Insurance and Freight) — the supplier arranges sea freight and insurance to your destination port. Convenient, but you lose visibility on freight margin and destination charges.
DDP (Delivered Duty Paid) — the supplier handles everything to your door including duty. Simplest for you, but you are trusting someone else's duty classification.
Which to choose on a first order
FOB is usually the right balance. You keep control of freight and destination charges while the supplier handles the part of the journey that happens in their jurisdiction.
The clause that prevents disputes
Write the Incoterm, the named place and the Incoterms edition on the proforma invoice. "FOB Karachi (Incoterms 2020)" leaves no room for argument.
Unsure whether FOB, CIF or DDP suits your first shipment? Request a quote at beltasports.com and ask Belta Sports to price your order under more than one Incoterm so you can compare the full landed cost.
Related reading
Planning a brand from scratch? Start with our pillar guide: How to Start a Sportswear Brand in 2027.
About the author
Hamza Iqbal
Head of Export Operations, Belta Sports
Hamza has spent over a decade coordinating apparel export shipments out of Sialkot for buyers in the UK, EU, US and Australia.