Incoterms define exactly where the seller's responsibility ends and the buyer's begins — for cost, risk, and logistics coordination.
Why Incoterms Matter for Every Shipment
Incoterms answer three practical questions: (1) Who arranges and pays for transport at each stage? (2) Who bears the risk of loss or damage, and when does it transfer? (3) Who is responsible for export and import customs clearance?
EXW (Ex Works)
Under EXW, the seller's obligation ends the moment the goods are made available at their own premises. Everything else — loading, domestic transport, export clearance, ocean/air freight, import clearance, final delivery — is the buyer's responsibility. EXW gives maximum control but also maximum responsibility.
FOB (Free on Board)
Under FOB, the seller delivers the goods to the port of origin, clears export customs, and loads them onto the vessel. Risk transfers once goods are on board. FOB is one of the most widely used terms for India-Russia sea freight.
CIF (Cost, Insurance, and Freight)
Under CIF, the seller arranges and pays for the goods, export clearance, ocean freight, and minimum cargo insurance to the destination port. CIF can simplify origin-side logistics but means less visibility over carrier choice and routing.
Choosing the Right Term for India-Russia Shipments
| Factor | EXW | FOB | CIF |
|---|---|---|---|
| Buyer controls freight booking | Yes | Yes | No |
| Buyer arranges export clearance | Yes | No | No |
| Seller arranges main freight | No | No | Yes |
| Best for buyers wanting full control | Yes | Yes | No |
For most Indian-origin shipments into Russia, FOB strikes a practical balance.
Get the Incoterm Right Before You Sign
RR Brothers and Logistics supports importers across all common Incoterms, coordinating everything from origin pickup in India to ocean freight, customs clearance, and final delivery in Russia. Contact us for guidance on structuring your shipment terms.