Olive Oil Incoterms: FOB, CIF, EXW, DDP Explained

Q: What do FOB, CIF, EXW, and DDP mean?

Short answer: incoterms are international rules that allocate costs and risks between seller and buyer. EXW = ex works (the buyer takes on everything). FOB = the seller delivers on board the vessel at the port of departure. CIF = the seller pays freight + insurance to the port of arrival. DDP = the seller delivers everything cleared to th

Q: How do you calculate the landed cost?

The landed cost adds up, in order: 1. Oil cost (purchase + ONH analyses + filtration losses ~1.8%). 2. Packaging (flexitank/IBC/drums). 3. → EXW : + ex-works fees. 4. → FOB : + port fees, ONH, inland pre-carriage. 5. → CIF : + ocean freight (less the FOPRODEX support on the Tunisian side) + insurance. 6. → Landed : + customs duties + VAT

Q: FOB or CIF: which to choose?

Choose FOB if you (the buyer) have a forwarder and want to negotiate your freight and insurance. Choose CIF if you prefer a "landed-port" price where the seller organizes freight and insurance. On the seller side, FOB limits your exposure; CIF makes you more competitive on a landed price.

Q: What does FOB mean for olive oil?

FOB (Free On Board) means the seller delivers the goods loaded on board the vessel at the port of departure (Radès or Sfax). From loading on board, costs and risks pass to the buyer, who organizes the main carriage and insurance.

Q: What exactly does CIF cover?

Under CIF (Cost, Insurance & Freight), the seller pays the ocean freight and an insurance to the port of arrival. Note: CIF insurance is often at the minimum level; the buyer may take out additional coverage if they wish.

Q: Should you avoid DDP when exporting?

Not always, but never with an unknown client . Under DDP, the seller delivers everything cleared and pays the destination country's duties and VAT. Without precise costing of the local customs, DDP wipes out the margin. Reserve it for established clients.

You are quoting or importing olive oil and stumbling over the acronyms FOB, CIF, EXW, DDP? This article explains simply who pays what and how far, when to choose each incoterm on the buyer side and the seller side, the mistakes that wipe out a margin, and points you to the incoterm selector and the landed cost calculator. Allocation table, decision tree, and FAQ included.

Free PDF cheat sheet: the "who pays what" table + the incoterm decision tree on a single page. Get it by email »

What do FOB, CIF, EXW, and DDP mean?

Short answer: incoterms are international rules that allocate costs and risks between seller and buyer. EXW = ex works (the buyer takes on everything). FOB = the seller delivers on board the vessel at the port of departure. CIF = the seller pays freight + insurance to the port of arrival. DDP = the seller delivers everything cleared to the buyer.

For Tunisian olive oil exported in bulk (flexitank, IBC, drums), the incoterm is the clause that, poorly chosen, turns a good deal into a loss. This guide helps you decide — without needless jargon; the technical acronyms (B/L, EUR.1, LC…) are defined in the glossary.

Table: who pays what by incoterm?

Allocation of the seller's (exporter's) responsibilities up to where they go. Beyond that, everything falls to the buyer (importer).

Incoterm	The seller goes as far as	Main carriage	Insurance	Import customs	Ideal for
EXW (Ex Works)	Ex works / warehouse	Buyer	Buyer	Buyer	Buyer with a local agent
FCA	Handover to the carrier	Buyer	Buyer	Buyer	Containerized, self-reliant buyer
FOB (Free On Board)	Goods loaded on board (Radès/Sfax)	Buyer	Buyer	Buyer	1st export standard
CFR (Cost & Freight)	Freight to the port of arrival	Seller	Buyer	Buyer	Buyer wanting a landed-port price
CIF (Cost, Insurance & Freight)	Freight + insurance to the port of arrival	Seller	Seller	Buyer	Buyer wanting an "all-in" port price
DAP (Delivered At Place)	Delivered to the agreed place (not cleared)	Seller	Seller	Buyer	Trusted clients
DDP (Delivered Duty Paid)	Delivered cleared to the buyer	Seller	Seller	Seller	Established clients only

Data July 2026, to be confirmed with your forwarder. Compare the real total cost with the landed cost calculator.

Key takeaway: the further right in the table (DAP, DDP), the more the seller carries costs and risks; the further left (EXW, FCA), the more it is the buyer who steers. FOB and CIF are the middle ground of olive oil export.

Box: buyer side / seller side

The same incoterm doesn't read the same way depending on your role.

Angle	What the incoterm changes for you	Reflex
Buyer (importer)	What you must organize and insure, and where your risk begins	Prefer FOB/CIF at the start; master your import customs
Seller (exporter who sells)	How far your cost goes, and therefore your margin	Never quote DDP to a stranger; start with FOB
Exporter (Tunisia operations)	The documents and logistics to secure (B/L, EUR.1, insurance)	Anticipate the EUR.1 (0% EU) and freight (FOPRODEX support)

Contract drafting rule: an incoterm is worth nothing without its reference place ("FOB Radès", "CIF Marseille"). Always state the port.

When should you choose which incoterm?

Buyer side (importer / distributor)

Do you have a reliable forwarder and agent? → FOB gives you the best control and often the best total cost (you negotiate your freight).
Do you want a "landed-port" price without handling transport? → CIF: the seller organizes freight and insurance to your port.
Are you starting out and want zero logistics? → DAP/DDP simplify things, but you pay for that comfort and lose control over the costs. Reserve for trusted suppliers.

Buyer tip: under FOB, take out your own transport insurance — the risk shifts to you as soon as the goods are loaded on board.

Seller side (exporter)

First client, risky market? → FOB: you limit your exposure to the port of departure.
Do you want to offer a competitive "landed" price without carrying all the customs risk? → CIF/CFR: you carry the transport, not the import clearance.
Established client requiring a final price? → DAP/DDP, but cost it precisely — duties, VAT, and fees of the destination country before quoting, otherwise customs wipes out your margin.

Seller golden rule: don't sell DDP to an unknown client. You would carry the taxation of a country you don't master.

How do you calculate the landed cost?

The landed cost adds up, in order:

Oil cost (purchase + ONH analyses + filtration losses ~1.8%).
Packaging (flexitank/IBC/drums).
→ EXW: + ex-works fees.
→ FOB: + port fees, ONH, inland pre-carriage.
→ CIF: + ocean freight (less the FOPRODEX support on the Tunisian side) + insurance.
→ Landed: + customs duties + VAT + destination fees.

Useful reminder: 1 L of oil ≈ 0.913 kg (to convert €/kg ↔ €/L). Do the full calculation, incoterm by incoterm, with the export cost calculator, then check the duties by country with the customs tool.

Mistakes to avoid with incoterms

Forgetting the reference place: "FOB" alone means nothing — write "FOB Radès".
Believing that CIF = insured for the buyer: CIF insurance is often at the minimum; the buyer may want their own coverage.
Quoting DDP without costing the destination customs: the #1 trap that wipes out the seller's margin.
Confusing cost transfer and risk transfer: under FOB, the risk shifts at loading on board, even if the buyer pays the freight.
Ignoring the EUR.1: without a certificate of origin, the EU buyer loses the 0% duty within the quota — a hidden cost that isn't in any incoterm.
Selling EXW to a distant buyer: they must handle the Tunisian export, which often blocks the operation.

Golden rules

Beginner (buyer or seller): start with FOB or CIF.
Always specify the port and the Incoterms version (e.g. Incoterms® 2020).
Always cost the full landed cost before arbitrating between two incoterms — a cheaper FOB may cost more landed than a CIF.
Insurance: never assume who took it out or at what level — check it in the contract.

Incoterm selector » — answer 4 questions, get the right incoterm, then cost it.

FAQ — Olive oil incoterms

FOB or CIF: which to choose?

Choose FOB if you (the buyer) have a forwarder and want to negotiate your freight and insurance. Choose CIF if you prefer a "landed-port" price where the seller organizes freight and insurance. On the seller side, FOB limits your exposure; CIF makes you more competitive on a landed price.

What does FOB mean for olive oil?

FOB (Free On Board) means the seller delivers the goods loaded on board the vessel at the port of departure (Radès or Sfax). From loading on board, costs and risks pass to the buyer, who organizes the main carriage and insurance.

What exactly does CIF cover?

Under CIF (Cost, Insurance & Freight), the seller pays the ocean freight and an insurance to the port of arrival. Note: CIF insurance is often at the minimum level; the buyer may take out additional coverage if they wish.

What is the EXW incoterm?

EXW (Ex Works) is the most seller-favorable incoterm: the buyer takes on everything, from loading at the factory to the final delivery, including Tunisian export formalities. Reserve it for buyers with a local agent.

Should you avoid DDP when exporting?

Not always, but never with an unknown client. Under DDP, the seller delivers everything cleared and pays the destination country's duties and VAT. Without precise costing of the local customs, DDP wipes out the margin. Reserve it for established clients.

Does the incoterm transfer cost or risk?

Both, but not always at the same point. Under FOB, for example, the risk shifts to the buyer as soon as the goods are loaded on board, even if some costs are shared by contract. This is a frequent and costly confusion.

Do you need to specify the port in the incoterm?

Yes, always. An incoterm without a reference place is ambiguous: write "FOB Radès" or "CIF Marseille". Also specify the Incoterms® version (e.g. 2020).

How do you calculate the landed cost by incoterm?

Add up oil cost, packaging, ex-works fees, then port/ONH/inland fees (FOB), then freight + insurance (CIF), then duties + VAT + destination fees (landed). Use our export cost calculator to compare incoterm by incoterm.

Which incoterm for a first import of Tunisian olive oil?

FOB (if you control transport) or CIF (if you want a landed-port price). These two incoterms offer the best control/simplicity balance for a first operation. Avoid EXW and DDP at the start.

Does the incoterm include transport insurance?

Only CIF, CIP, DAP, DPU, and DDP require the seller to handle transport (and an insurance for CIF/CIP). Under FOB, CFR, or EXW, insurance is the buyer's responsibility — never assume it.

Does the incoterm change the documents to provide?

Yes, in part. The bill of lading (B/L) and the allocation of fees vary, but the customs documents (invoice, packing list, EUR.1, COA, phytosanitary) remain required regardless of the incoterm. See the export documentation.

Can a bad incoterm really cost a lot?

Yes. An under-costed DDP, a FOB confused with a landed price, or an insurance wrongly assumed can wipe out an entire container's margin. That's why you must always cost the full landed cost before arbitrating.

Choose, cost, quote

You now know who pays what. The next step: decide for your operation and cost the real amount.

Incoterm selector » then landed cost calculator ».

Request a free quote — dated quotation in the incoterm of your choice (FOB Radès, CIF your port…). Drawer pre-filled "Incoterms guide."

Free PDF cheat sheet (lead magnet): receive by email the "Olive Oil Incoterms" cheat sheet — the "who pays what" table and the decision tree on a single page, ready to print. Simple sign-up (Brevo double opt-in), no spam. Receive the PDF cheat sheet »

To go further, read the complete guide to importing Tunisian olive oil A-Z.

Data July 2026, indicative and to be re-verified before any commitment. Sources: Incoterms® (international rules), IOC trade standard COI/T.15/NC, EU regulation.