Keep the rule, precise place and edition together
Record the quotation exactly, including the three-letter rule, named port or place and edition. For an offer using the current 2020 rules, the reference should identify the chosen rule, precise location and Incoterms 2020. Ask for clarification when the edition or location is missing.
- Specify the terminal, warehouse or agreed point where relevant, rather than leaving only a country or broad city name. Have the supplier and forwarder confirm that the rule fits the transport arrangement.
- Keep the ingredient specification, net quantity, currency and comparison receiving point consistent. Preserve the original quotation beside any comparison adjustments.
Write the paid-to destination and risk point in separate columns
For Incoterms 2020, identify where the seller must arrange carriage and where contractual delivery transfers risk. These can be different places.
- CIF: the seller pays carriage and insurance to the named destination port, while delivery and risk transfer occur on board the vessel at the shipment port. Identify both ports.
- CIP: the seller pays carriage and insurance to the named destination, while risk transfers on delivery to the carrier. Ask which carrier handover and exact delivery point the parties have agreed.
- DAP: the normal delivery and transport-risk point is at the named destination before unloading; import clearance remains the buyer's responsibility. Confirm the unloading arrangement separately.
Build a cost sheet for one receiving endpoint
List the quoted transport scope and the remaining services needed to reach your chosen comparison endpoint. For each item, record who arranges it, who bears the cost, whether it is included in the quoted total and the supporting quotation or confirmation.
- Check origin handling, main freight, destination terminal charges, onward transport, unloading, import clearance and applicable duties or taxes. Mark each amount as included, additional or unresolved; do not add an included charge twice.
- Under CIF, CIP and DAP, import clearance and duties are for the buyer. Have the importer confirm the applicable requirements and costs. A port quote and a warehouse quote need the remaining transport and handling legs reconciled.
Compare the actual insurance scope
CIF and CIP both include a seller obligation to arrange insurance, but their default coverage requirements under Incoterms 2020 differ. The word insured is not enough to make two offers equivalent.
- Request the proposed insurance wording or certificate, covered route, exclusions, deductible and claims contact. Ask who will resolve any requested change in coverage and confirm its cost.
- For a DAP offer, ask what insurance arrangement is actually proposed rather than copying the insurance assumptions from a CIF or CIP offer.
Send us the offers with the unanswered cost questions
For organic soy expeller cake, soybean meal or forage ingredients, send our MUSE team the quotations and required receiving point through the contact options below. We can organise supplier clarifications before you compare the offers.
- Use one row per offer: ingredient and net quantity | currency | rule, place and edition | paid-to destination | delivery and risk point | quoted total | confirmed additional buyer costs | insurance scope | unresolved item and owner.
- For the cost comparison, add only confirmed buyer costs needed to reach the same endpoint. Leave an incomplete total provisional. This worksheet does not change the supplier's quoted rule or agreed responsibilities.
Buyer questions
Does DAP mean import clearance and duties are included?
No. Under DAP Incoterms 2020, import clearance and duties remain the buyer's responsibility. Confirm those arrangements with the importer and clarify any separately quoted service.
Can I compare a CIF port price directly with a DAP warehouse price?
First reconcile the remaining transport, handling, import and unloading costs to one receiving point. Keep the different delivery, risk and insurance arrangements visible alongside the cost comparison.