Incoterms for packaging buyers

Incoterms are short codes, published by the International Chamber of Commerce, that say where the seller’s job ends and the buyer’s begins: who pays transport, who carries the risk, who handles customs. For packaging, three situations cover almost every order.

1. Pick up at factory (FCA)

The factory packs the goods, clears them for export and loads them onto your truck or your forwarder’s truck. From that moment, transport and risk are yours. FCA usually gives the lowest unit price, but you need a forwarder you trust.

Within the EU, a factory may also offer EXW (ex works), where even loading is your job. For shipments from outside the EU, FCA is the cleaner choice because the factory handles export clearance.

2. Delivered, I clear customs (DAP)

The factory arranges and pays transport to your address. If the goods cross a customs border — for example from Türkiye to Germany — import clearance and any duties are your responsibility, usually through a customs broker.

3. Delivered incl. import clearance (DAP + clearance)

The factory also handles import clearance and includes duties in its price. One thing never moves to the factory: import VAT. You are the importer, so import VAT is always paid by you — and in most cases you can reclaim it as input VAT. Check with your tax adviser.

How PACKbid handles it

In a tender you can accept several delivery terms. Each gets its own ranked list, because an FCA price and a delivered price are not the same thing. Next to FCA bids, PACKbid can show an estimated logistics cost so you can compare all lists on one landed-cost basis.

Ordering inside the EU, with origin and destination both in the EU? The customs lines disappear from the bid form entirely.