• IBT - Admin

Incoterms Explained Simply for Your Imports

In international trade, Incoterms (International Commercial Terms) are the universal language governing the delivery of goods. Published by the International Chamber of Commerce, these three-letter codes clearly define the responsibilities, costs, and risks between the buyer and the seller. To succeed in importing from China to Côte d’Ivoire, mastering these terms is essential to avoid financial misunderstandings with foreign suppliers.

The first Incoterm commonly encountered by beginners is EXW (Ex Works). Under this arrangement, the Chinese seller has minimal responsibility: they simply make the goods available at their premises or factory. It is then up to you, the Ivorian importer, to handle the entire logistics chain, from loading at origin and export formalities in China to customs clearance in Côte d’Ivoire. This option requires strong control over the entire supply chain

In contrast, FOB (Free On Board) is one of the most widely used and recommended Incoterms for sea freight from Asia. The Chinese supplier covers all costs until the goods are loaded on board the vessel at the port of departure (e.g., Shanghai or Shenzhen). Once the goods are on board, risk is transferred to the buyer, who assumes responsibility for the main transport and insurance.

Another popular option is CFR (Cost and Freight), where the seller pays for sea freight to the Port of Abidjan but no longer bears the risk once the goods are loaded in China. CIF (Cost, Insurance and Freight) adds mandatory insurance arranged by the seller for the buyer’s benefit. However, even under CIF Abidjan terms, unloading costs, port handling fees, and local customs charges remain entirely the buyer’s responsibility upon arrival.

Choosing the wrong Incoterm when signing a commercial contract can hide significant unexpected costs that may undermine the profitability of your project. A supplier may offer an attractive EXW price, but inland transport costs in China can become extremely high if the factory is located far from major ports. It is therefore essential to consult your customs broker before finalizing any international purchasing agreement.

At Ivory Bridge Transit, we regularly assist Ivorian businesses in decoding international contracts and selecting the most advantageous Incoterms. We negotiate with shipping lines on your behalf and ensure seamless coordination between your supplier’s obligations and your local requirements. Contact IBT today to secure your purchasing conditions and optimize your logistics costs end to end.