Incoterms® allocate certain obligations, costs and risks between seller and buyer in an international sale.
They help determine who organises transport, who handles certain formalities, who must arrange insurance when the rule requires it, and when the risk of loss or damage passes from seller to buyer.
There is no “Incoterms 2026” edition. Incoterms® 2020, published by the International Chamber of Commerce (ICC), remain the official version in force.
For a Cameroonian importer using Douala or Kribi, the Incoterm can change how much control you keep over freight, insurance, documents and delivery. Ground-level detail (CIMA insurance, CIF value in CAMCIS) is in our Incoterms guide for Cameroon.
What are the 11 Incoterms?
Incoterms split into two families: seven rules for any mode of transport and four rules reserved for sea or inland waterway transport.
Always distinguish who pays from who bears the risk. Those two transfers do not always happen at the same moment.
Table: rules for all modes of transport
| Incoterm | Full name | Main carriage | Export customs | Import customs | Risk transfer |
|---|---|---|---|---|---|
| EXW | Ex Works | Buyer | Buyer | Buyer | At the seller’s premises |
| FCA | Free Carrier | Buyer | Seller | Buyer | Handed to the carrier |
| CPT | Carriage Paid To | Seller | Seller | Buyer | Handed to the first carrier |
| CIP | Carriage and Insurance Paid | Seller (with insurance) | Seller | Buyer | Handed to the first carrier |
| DAP | Delivered At Place | Seller | Seller | Buyer | Made available at destination |
| DPU | Delivered at Place Unloaded | Seller | Seller | Buyer | After unloading at destination |
| DDP | Delivered Duty Paid | Seller | Seller | Seller | Delivered, cleared at destination |
Table: rules for sea and inland waterway transport
| Incoterm | Full name | Main carriage | Export customs | Import customs | Risk transfer |
|---|---|---|---|---|---|
| FAS | Free Alongside Ship | Buyer | Seller | Buyer | Alongside the ship |
| FOB | Free On Board | Buyer | Seller | Buyer | Loaded on board |
| CFR | Cost and Freight | Seller | Seller | Buyer | Loaded on board |
| CIF | Cost, Insurance and Freight | Seller (with insurance) | Seller | Buyer | Loaded on board |
FOB: Free On Board
Under FOB, the seller delivers when the goods are loaded on board at the named port. The buyer then organises the main ocean carriage.
FOB can work well when the importer has logistics partners able to negotiate and track freight — including a licensed customs broker in Cameroon.
Caution with containerised cargo
When containerised goods are handed to a terminal before they are actually loaded on board, FCA is often more appropriate than FOB. The rule must match the real place of handover and the operational pattern.
CIF: Cost, Insurance and Freight
Under CIF, the seller organises and pays freight to the destination port and provides the insurance required by the rule.
For the importer, the main advantage can be simplicity. In return, the buyer has less direct control over freight negotiation, some service providers and certain transport conditions.
CIF is neither automatically worse nor automatically better. Compare the landed cost and the level of control you want. In Cameroon, CIF often clashes with local CIMA insurance and CIF value in CAMCIS: the FOB vs CIF comparison covers those pitfalls.
FCA: an important alternative for containers
FCA is especially relevant when goods are handed to a carrier or a terminal before ocean loading — including LCL consolidation.
The seller completes the export obligations provided for and hands the goods to the carrier at the named place. The buyer can then organise the main carriage.
EXW: beware of false simplicity
EXW looks simple because the seller mainly makes the goods available at their premises. A large share of the organisation then falls on the buyer: collection, local haulage, export, international transport, insurance and import.
For an importer without a reliable partner in the origin country, this rule can become hard to control.
DAP: a useful compromise
Under DAP, the seller organises transport to the named place at destination. The buyer still handles import formalities and the corresponding duties and taxes.
DDP: be cautious before accepting it
DDP places a very high level of obligation on the seller. Before accepting DDP into Cameroon, check that the supplier and their partners actually have the legal, tax and operational capacity to meet those obligations.
Which Incoterm to choose when importing into Cameroon?
There is no universal answer. At minimum, review:
- the mode of transport;
- the nature of the goods (including a vehicle);
- the type of load;
- the actual place of handover to the carrier;
- the supplier’s ability to handle export;
- your ability to negotiate freight;
- insurance;
- destination costs;
- your level of experience.
For containerised cargo, compare FCA/CIP with FOB/CIF when that matches the real flow.
How to write the Incoterm correctly in a contract
Do not write only “FOB” or “CIF”. State the precise place and the version.
Examples: FOB Shanghai Port – Incoterms® 2020 or FCA Terminal X, Shanghai – Incoterms® 2020.
Frequent mistakes
- choosing only on the supplier’s price;
- confusing transfer of costs with transfer of risk;
- using FOB for every container;
- forgetting to name the place;
- not comparing the landed cost in Cameroon;
- ignoring port and onward-haulage charges;
- not checking the contract of carriage.
Before you sign the purchase order
Ask the supplier for several scenarios: FCA, FOB and CIF when those options are relevant. Then compare freight, insurance, destination charges and the level of control you want to keep.
ALC Transit can help you run that comparison and identify the rule that fits your Cameroon import. Ask for an opinion.