EXW vs FCA vs DAP: Which Incoterm Is Right for Your Import?
Incoterms determine who pays for freight, who handles customs, and who bears the risk when a shipment is in transit. If you're importing bulk hardware internationally, choosing the wrong one costs money.
Logistics
5 min read
Incoterms — International Commercial Terms — are a standardised set of trade definitions published by the International Chamber of Commerce. They define precisely where the seller's responsibility ends and the buyer's begins in an international shipment.
For bulk hardware imports, the choice of Incoterm affects your landed cost, your logistics complexity, and your insurance liability. Here's a plain-English breakdown of the three we offer.
— EXW — Ex Works
Under EXW, our responsibility ends at our Oakville warehouse door. You arrange and pay for everything from that point: pickup, export documentation, customs clearance, international freight, destination customs, and final delivery.
Lowest unit cost — you absorb the full logistics chain
Best for buyers with established freight forwarding accounts
You control carrier choice and insurance terms
More paperwork on your side — export customs are your responsibility
— FCA — Free Carrier
Under FCA, we deliver the units to your nominated freight forwarder at an agreed point — typically a freight station in Toronto or the Buffalo border hub. We handle export clearance and loading. From there, your forwarder takes over.
Why Most BPO Buyers Choose FCA
FCA balances cost control with logistics simplicity. You keep control of your freight forwarder relationship (and negotiate your own rates) while we handle the Canadian export side. Most of our Philippines and India buyers default to FCA.
— DAP — Delivered at Place
Under DAP, we manage everything end-to-end: export clearance, international freight, and delivery to your specified facility. You handle import duties and local handling at your end. We work with established freight partners to Manila, Cebu, Mumbai, Chennai, Nairobi, Lagos, and other major destinations.
Hands-off for the buyer — ideal for first-time importers
We absorb freight risk until delivery to your door
Higher per-unit cost (freight is included in our price)
You still handle import duties and local taxes
How to Choose
If you already have a freight forwarder: choose FCA. If you're new to importing hardware: choose DAP for your first order — it removes complexity and lets you focus on the destination side. If you have a strong freight account and want maximum cost control: EXW.
