Incoterms for peptide shipments
An Incoterm is a risk-allocation device. Choosing one is not a freight preference — it decides who owns the goods when something goes wrong.
Part of the shipping & customs pillar.
The four terms buyers actually use
| Term | Freight | Risk transfers | Best for |
|---|---|---|---|
| EXW | Buyer | At supplier premises | Buyers with an established forwarder and export capability |
| FOB | Buyer (after loading) | On board | First orders where the buyer wants control of the forwarder |
| CIF | Supplier | At destination port | Buyers who want a single quote including freight and minimum insurance |
| DDP | Supplier | At buyer's address | Repeat orders where the supplier has a proven clearance path |
FOB: the default for a first shipment
FOB gives the buyer control of the forwarder, which means visibility and a direct relationship with the carrier. The risk transfers when the goods are on board, so the buyer owns the transit risk — which is why insurance matters. For a first order, this is usually the most auditable structure.
CIF: convenient, but read the insurance
CIF includes freight and insurance to the destination port, but the cover is typically minimum (Institute Cargo Clauses C or similar). For high-value peptides, that may not cover the risks you care about — temperature damage, for example, is often excluded. If you choose CIF, ask for the policy wording, not just the term.
DDP: convenience with a hidden dependency
DDP is attractive because the supplier handles everything, including clearance. The trap: if the supplier clears under its own importer identity, the buyer may not appear in the customs record, and the supplier must be legally able to act as importer in the destination. For restricted categories, that can be impossible or non-compliant. Use DDP only when the supplier has a proven, lawful clearance path.
What to put in the contract
- The named Incoterm and the edition (e.g., Incoterms 2020).
- The named place or port — "FOB Shanghai" is not the same as "FOB any Chinese port".
- Who arranges insurance and at what cover.
- Who bears the cost of a customs hold, return or destruction.
Editor's take
An Incoterm is a sentence about who owns the risk when things go wrong. Choose it for the risk you can manage, not for the freight quote you like.
Limitations
This is not legal or customs advice. Classification, permits and destination rules must be confirmed with a licensed broker and the relevant authority.
Products referenced in this guide
- Research peptide catalogue — shipment specifications
- Wholesale & bulk supply — commercial terms
- Cargo insurance — transferring transit risk