Which Incoterm is chosen when the seller wants to minimize risks while clearing customs?

The appropriate Incoterm for a seller aiming to minimize risks associated with customs clearance is Delivery Duty Paid (DDP). This term places maximum responsibility on the seller, as the seller is responsible for delivering the goods to the buyer's destination, along with handling all costs and risks involved in transportation and customs clearance.

When utilizing DDP, the seller takes care of all aspects including export and import duties, taxes, and fees, ensuring that the customs process is completed before the goods reach the buyer. This not only alleviates the buyer from the complexities of customs but also minimizes the risk of delays or additional costs that might arise during the clearance process. As a result, DDP is a favored term for sellers who prefer to manage risks closely and ensure smooth delivery.

Other options, while relevant in different contexts, do not offer the same level of risk management in customs. FOB (Free On Board) and FCA (Free Carrier) place the responsibility of export customs clearance on the seller but do not cover import customs duties and risks, which can lead to complications for the buyer. CIF (Cost, Insurance, and Freight) focuses primarily on cost and insurance until arrival at the destination port but also does not provide the same comprehensive coverage regarding customs obligations as D