Incoterms at a glance
| Incoterm | Who arranges main freight | Saudi import clearance | Saudi duty and VAT |
|---|---|---|---|
| EXW | Buyer, from the seller’s door | Buyer | Buyer |
| FCA | Buyer, from the agreed handover point | Buyer | Buyer |
| FOB | Buyer, once loaded on the vessel | Buyer | Buyer |
| CFR / CIF | Seller pays main freight (CIF adds insurance) | Buyer | Buyer |
| CPT / CIP | Seller pays carriage to destination (CIP adds insurance) | Buyer | Buyer |
| DAP | Seller delivers to the named place | Buyer | Buyer |
| DPU | Seller delivers and unloads | Buyer | Buyer |
| DDP | Seller delivers with duties paid | Seller | Seller |
Which Incoterm is best for Saudi importers?
For most imports we recommend FOB (sea) or FCA (air and multimodal). Your supplier handles export clearance and loading, while you, through ShipVerge, control the freight cost, transit time and Saudi clearance. CIF often looks cheaper on the invoice, but you lose control over the carrier and destination charges.
When to use EXW
EXW suits suppliers who cannot handle export paperwork. ShipVerge then collects from the factory and arranges export clearance through local partners, which adds cost and coordination.
When to use DAP or DDP
DAP and DDP are used when the seller wants to deliver to the buyer’s door. With DDP the seller also pays Saudi duty and VAT, which is common for overseas companies selling to Saudi customers.
Frequently asked questions
What is the best Incoterm for importing into Saudi Arabia?
FOB for sea freight and FCA for air are usually best, because you control the freight cost and timing while your supplier handles export clearance.
Is CIF cheaper than FOB?
Not always. CIF includes freight on the supplier’s invoice, but destination charges and slower carriers can make the total landed cost higher than FOB.
Who pays customs duty under DDP?
The seller pays Saudi customs duty and VAT under DDP. Under every other Incoterm, the buyer pays them.
Reviewed by Hammad Basravi, Operations Manager, Freight & Customs · Updated November 2026