Trade Guide

Incoterms 2020 Explained: A Practical Guide for Afghan Importers & Exporters

6 min readBy Wakman Group trade desk

Who pays for the truck? Where does risk transfer? The six Incoterms that matter most for trade with Afghanistan, explained without legal jargon.

Every international quotation hides a question: where does the seller's responsibility end and the buyer's begin? Incoterms — the standard trade terms published by the International Chamber of Commerce — answer it in three letters. Used correctly, they prevent disputes. Used carelessly, they produce expensive surprises at borders and warehouses.

The terms you will actually meet

  • EXW (Ex Works) — the buyer collects from the seller's door and carries everything: loading, freight, insurance, customs.
  • FCA (Free Carrier) — the seller hands the goods to the buyer's nominated carrier; a clean split for container shipments.
  • CPT (Carriage Paid To) — the seller pays freight to a named point, but risk transfers earlier, at the first carrier.
  • CIP (Carriage and Insurance Paid To) — like CPT, with the seller also arranging insurance for the journey.
  • DAP (Delivered at Place) — the seller delivers to the buyer's named place, ready for unloading; import clearance stays with the buyer.
  • DDP (Delivered Duty Paid) — the seller carries everything including import duty. Maximum service, maximum responsibility.

What works for Afghanistan

Because Afghanistan is landlocked, most quotes reference inland named places rather than ports: a border point such as Hairatan or Islam Qala, or a city warehouse in Kabul or Herat. Foreign suppliers commonly sell FCA or CPT to a hub, while buyers who want a single landed price ask for DAP or DDP to their warehouse — which is only realistic when the seller has a local partner able to clear and deliver. That partner role is exactly what Wakman Group provides for our principals.

The three letters matter less than the named place next to them. 'DAP Kabul' and 'DAP Hairatan' are completely different deals.

Mistakes we see most often

  • Quoting CIF for a landlocked destination — CIF ends at a seaport; the expensive overland leg is left undefined.
  • Forgetting the named place, so nobody knows where responsibility actually transfers.
  • Assuming 'the seller arranges freight' means 'the seller clears customs' — clearance is separate unless the term says DDP.
  • Skipping insurance on CPT or DAP terms even though risk has already transferred to the buyer.

How we quote

Every Wakman Group quotation states the Incoterm, the named place and exactly which documents and charges are included — so both sides price the same deal. If you are comparing offers, send them to us and we will show you what each one really covers.

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