Incoterms 2020 Explained: FOB, EXW, DDP, CIF for Turkey Clothing
FOB Istanbul or CIF buyer-port are the workhorses of Turkey apparel export. DDP is rising as buyers offload customs to factories. EXW (ex works) is cheap on paper but pushes inland trucking and Turkish customs onto the buyer. This page maps each Incoterm to actual cost responsibility and risk transfer.
Frequently asked questions
What Incoterm should I use with a Turkish factory?
FOB Istanbul (or FOB Mersin for South-Turkey factories) is the safest first-order term. The factory handles Turkish export, you control international shipping. DDP is convenient but adds 4-8% over FOB.
What does FOB Istanbul include?
Cargo loaded onto vessel at Ambarli or Haydarpasa port, Turkish export customs cleared, all inland trucking from factory to port. Excludes ocean/air freight, destination port fees, import duties.
Is DDP from Turkey worth the premium?
For sub-1,000 piece orders, yes - it eliminates customs paperwork for the buyer. For container-loads, FOB plus your own freight forwarder is 5-9% cheaper.
What is EXW and why is it risky?
Ex works hands the goods at the factory dock. The buyer arranges Turkish trucking, export customs, port handling. New buyers underestimate this; budget 200-400 EUR per pallet just for Turkey-side logistics.
Who buys cargo insurance under CIF?
The seller (factory) buys minimum cover (Institute Cargo Clauses C). For high-value goods, buyers usually layer additional all-risk insurance independently.
Related sourcing topics
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