Shipping Terms - Incoterms 2020
HGP Vietnam applies the Incoterms® 2020 international trade rules (published by the International Chamber of Commerce, ICC) to clearly define responsibilities, costs, and risks between seller and buyer for each export order. We currently quote primarily on FOB, and also support DDP (delivered duty paid) for customers who need a complete door-to-door solution.
| Term | Full Name | Meaning | Mode of Transport |
|---|---|---|---|
| EXW | Ex Works | The buyer bears all costs and risk from the seller's premises. | Any mode of transport |
| FCA | Free Carrier | The seller delivers the goods to the carrier nominated by the buyer. | Any mode of transport |
| CPT | Carriage Paid To | The seller pays freight to the destination; risk transfers once the goods are handed to the first carrier. | Any mode of transport |
| CIP | Carriage and Insurance Paid To | Same as CPT, plus the seller arranges insurance for the goods. | Any mode of transport |
| DAP | Delivered at Place | The seller bears responsibility and risk to the named destination, not unloaded. | Any mode of transport |
| DPU | Delivered at Place Unloaded | Same as DAP, with the seller also responsible for unloading at destination. | Any mode of transport |
| DDP Supported | Delivered Duty Paid | The seller bears all costs, risk, and import duties all the way to the buyer's premises. | Any mode of transport |
| FAS | Free Alongside Ship | The seller delivers the goods alongside the ship at the port of loading. | Sea / inland waterway only |
| FOB Currently used | Free on Board | The seller bears costs and risk until the goods pass the ship's rail at the port of loading. | Sea / inland waterway only |
| CFR | Cost and Freight | The seller pays freight to the destination port; risk transfers at the port of loading. | Sea / inland waterway only |
| CIF | Cost, Insurance and Freight | Same as CFR, plus the seller arranges insurance for the goods. | Sea / inland waterway only |
FOB - HGP Vietnam's primary term
HGP is responsible for production, packing, export procedures, and delivery over the ship's rail at a Vietnamese port. From that point, international shipping costs and risk belong to the buyer or their nominated forwarder. This is the most common choice, giving customers control over carrier selection and logistics cost optimization.
DDP - the all-in-one solution
For partners who want to simplify the import process, HGP can coordinate with logistics providers to quote on DDP terms - door-to-door delivery including freight, insurance, and import duties in the buyer's country.