Incoterms for Lighting Orders, in Plain Language

Incoterms are the shortest part of a quotation and the part that decides risk, cost and the point at which a buyer's insurance becomes relevant. Two buyers paying the same unit price can be exposed completely differently.

The four you will actually see

Most lighting offers arrive on one of four terms, and the differences matter every time a shipment is delayed or damaged.

Why EXW is worse than it looks

Ex-works feels like the cheapest line on a quotation because it excludes everything. It also puts the buyer in charge of inland haulage in a country where they have no carrier relationship, and it transfers risk at the factory gate, which is before any of the handling that actually damages lamps.

FOB is the common middle

FOB is the standard term in Asian lighting supply because it gives the seller responsibility for getting goods loaded and the buyer control over the ocean leg. It works well when the buyer has a forwarder relationship and poorly when they do not.

DDP and the duty question

Delivered duty paid is convenient and frequently mispriced, because the seller is estimating a duty rate and an additional-duty position that they do not control. Ask any DDP quotation to state the classification and the duty rate it assumes, and confirm the figures separately.

Match the term to the insurance

Risk and insurance have to be considered together. A term that passes risk at the origin port but leaves the buyer arranging insurance from the destination warehouse has a gap in the middle, and containers do get held and moved in that gap.