📌 Key Takeaways

Exporting kraft paper means choosing who controls the shipment, where liability shifts, and who must insure—not “winning” a contract term but aligning obligations with your team’s actual capabilities.

• Containers Demand Different Rules Than Break-Bulk: FCA, CPT, and CIP reflect how containerized cargo actually moves through multimodal networks, while FOB, CFR, and CIF create risk gaps because they assume ship’s-rail handovers that never happen with containers.
  
• CIP Provides Stronger Insurance Than CIF: Institute Cargo Clauses (A) under CIP cover handling damage, theft, and contamination that Institute Cargo Clauses (C) under CIF exclude, making the 0.2-0.4% premium difference worthwhile on fragile or high-value lanes.
  
• Vague Named Places Trigger Payment Delays: “FCA Hamburg” leaves room for dispute; “FCA – Gateway Distriparks CFS, Shed 7, JNPT, Navi Mumbai” with matching documentary evidence ensures banks accept your paperwork and buyers know exactly where handover occurs.
  
• DDP Without Local Infrastructure Causes Cargo Abandonment: Accepting delivered duty paid terms without fiscal representatives, customs brokers, and pre-cleared import permits traps shipments in destination ports accumulating demurrage until they’re sold at auction or destroyed.
  

Match the Incoterm to your logistics competence, not to buyer habit or legacy practice.

Export-focused kraft paper teams across sales, operations, finance, and credit will gain a practical decision framework here, preparing them for the detailed Incoterms guidance that follows.

Exporter Reality Check: What “Risk Shift” Actually Means

Incoterms define three critical dimensions of international trade: risk transfer, cost allocation, and control over transportation. When a kraft paper exporter quotes “FCA Hamburg” versus “CIP Mumbai,” they’re making a strategic decision about where responsibility for the goods passes from seller to buyer.

A practical way to evaluate any Incoterm:

• Who books and pays for each leg of transport?
• Exactly where does the risk of loss or damage transfer?
• Who must obtain insurance, if anyone?

Risk transfer occurs at a specific, named place. At that moment, the obligation for loss or damage shifts from exporter to buyer. This is distinct from title transfer, which follows contractual or letter-of-credit terms, and payment obligations, which are negotiated separately. Understanding this separation prevents common misconceptions where exporters assume Incoterms govern more than they actually do.

Cost allocation determines who pays for freight, insurance, and handling up to the delivery point. An exporter using CPT arranges and pays for the main carriage but transfers risk when the goods reach the first carrier. Control over logistics—choosing carriers, routes, and timing—often matters as much as cost, especially for time-sensitive shipments or when quality handling is paramount.

As of October 2025, Incoterms® 2020 remains the operative ruleset published by the International Chamber of Commerce. These 11 terms apply across all modes of transport, though seven are designated for specific uses. Exporters must reference these current definitions in contracts, as previous versions (2010, 2000) contain outdated provisions that can create disputes.

Mode Matters: Containerized Rolls vs Break-Bulk Reels

The physical shipping method fundamentally determines which Incoterms align with operational reality. Most kraft paper moves in containerized rolls—20-foot or 40-foot containers loaded at the mill or consolidation facility. For these shipments, the International Chamber of Commerce notes that cargo in containers is typically handled under CPT or CIP rather than CFR or CIF, and exporters should default to FCA, CPT, or CIP—all of which accommodate any mode of transport including the typical truck-to-rail-to-vessel journey.

FOB, CFR, and CIF are sea-only terms designed for break-bulk cargo where goods physically cross the ship’s rail. Using FOB for a container creates a practical problem: risk doesn’t transfer when the container is loaded onto the truck at the exporter’s gate, but rather when it’s placed on the vessel—potentially days or weeks later. During that interval, the exporter remains responsible for goods they no longer control, creating an exposure gap.

Break-bulk shipments—jumbo rolls shipped on pallets via ro-ro vessels or conventional cargo ships—represent the narrow scenario where FOB, CFR, and CIF remain appropriate. The physical act of loading aboard the vessel provides a clear, observable risk-transfer moment. However, even in these cases, many exporters find CPT or CIP offer cleaner documentation and better insurance alignment.

Multimodal reality reinforces this distinction. When a container moves from factory to truck to rail terminal to feeder vessel to transshipment hub to ocean carrier, the traditional “ship’s rail” concept becomes meaningless. FCA allows risk transfer at the exporter’s preferred handover point—typically when the trucker takes possession at the mill gate or when the container reaches the forwarder’s container freight station.

Exporter-Favored Baselines

Different organizations have varying capabilities in logistics, insurance, and documentation. Matching Incoterms to internal competence prevents overpromising and reduces dispute risk.

FCA (Free Carrier) – Minimal Exporter Control

FCA transfers risk when the goods reach the first carrier at a precisely named place. For kraft paper manufacturers, this typically means the mill loading dock or a nearby container freight station. The exporter’s obligation ends with handing over loaded containers and providing export customs clearance documentation.

This term suits exporters who prefer not to manage international freight arrangements. The buyer controls carrier selection, routing, and transit timing. For smaller mills without dedicated logistics teams, FCA minimizes administrative burden while maintaining clear liability boundaries. The named place must be facility-specific: “FCA – Acme Mill, Loading Bay 3, 123 Industrial Road, Hamburg” rather than simply “FCA Hamburg.”

CPT/CIP (Carriage Paid To / Carriage and Insurance Paid To) – Moderate Exporter Control

CPT and CIP require the exporter to arrange and pay for the main carriage to the named destination. Risk still transfers when goods reach the first carrier, but the exporter maintains control over routing, carrier selection, and transit scheduling. This appeals to exporters with established freight relationships or preferential rates.

CIP adds mandatory insurance, with the exporter obligated to provide coverage meeting at least Institute Cargo Clauses (A) standards—broader coverage than the basic protection required under other terms. For high-value kraft paper grades or long-haul routes, CIP gives exporters more influence over claims handling since they hold the insurance policy.

These terms work well for exporters serving buyers in markets with limited freight infrastructure or where the buyer lacks logistics sophistication. By controlling the main leg, exporters can ensure their product arrives in good condition, protecting both the physical goods and their reputation.

Legacy Sea Terms: FOB/CFR/CIF – Use Only for True Break-Bulk

FOB (Free On Board), CFR (Cost and Freight), and CIF (Cost, Insurance, and Freight) remain common in paper trade conversations, largely due to historical precedent. Exporters should resist casual use of these terms for containerized shipments. The International Chamber of Commerce explicitly states these are appropriate only when goods cross the ship’s rail.

When break-bulk shipping is genuinely required, CIF offers a middle ground where the exporter arranges freight and basic insurance. However, the Institute Cargo Clauses (C) minimum provides limited coverage—typically only total loss or major damage. Buyers often find this insufficient and arrange supplementary insurance, creating redundant costs and potential gaps in coverage.

Destination-Heavy: DAP/DPU/DDP – Rare but Strategic

DAP (Delivered at Place), DPU (Delivered at Place Unloaded), and DDP (Delivered Duty Paid) shift maximum responsibility to the exporter. Risk transfers only when goods arrive at the named destination point, meaning the exporter bears all transit risk.

DPU specifically requires the exporter to unload the goods at the destination facility. This term replaced DAT (Delivered at Terminal) in Incoterms 2020. Exporters must specify who provides material handling equipment, confirm unloading capabilities at the site, and document the exact transfer point.

DDP adds import customs clearance and duty payment—obligations that require local tax registrations, customs brokers, and fiscal representatives in many jurisdictions. Exporters should avoid DDP unless they have established import infrastructure in the destination country. DAP provides a safer alternative, stopping just before customs clearance, allowing the buyer to handle import formalities with local expertise.

These terms appear most often in established customer relationships where repeat shipments justify the administrative investment, or in markets where buyers strongly prefer delivered pricing for budgeting purposes.

CIP vs CIF for Paper Rolls: Insurance and Practicality

Insurance requirements represent the clearest operational difference between CIP and CIF, with significant implications for claims and risk management. Under Incoterms 2020, CIP mandates Institute Cargo Clauses (A) coverage—broader “all risks” protection subject to standard exclusions. CIF requires only Institute Cargo Clauses (C), which covers major casualties but excludes many common transit damages—container falling overboard, cargo shifting during rough seas, or contamination from vessel condensation.

Institute Cargo Clauses (A) provides comprehensive coverage with fewer exclusions than the (C) clauses. For kraft paper rolls susceptible to moisture damage, crushing, or edge damage during handling, this broader coverage protects both parties. The exporter has incentive to purchase adequate coverage since they’re paying the premium, while buyers gain confidence that claims will be addressed.

Practical claim handling differs substantially. Under CIF, buyers typically purchase additional insurance separately, creating potential disputes about which policy covers which damage. With CIP, a single policy with clear insured parties (exporter as policyholder, buyer as loss payee) simplifies claims administration. Survey appointments, documentation submission, and settlement negotiations proceed through one insurer.

Many kraft paper suppliers standardize on CIP for high-value lanes—long-haul routes to Asia, specialized grades, or shipments to buyers in jurisdictions with complex insurance regulations. The incremental premium cost proves worthwhile when measured against reduced claims friction and faster settlement.

For routes where theft, political risk, or carrier reliability concerns exist, CIP’s flexibility allows the exporter to specify enhanced coverage terms in the sales contract. This might include naming specific approved carriers, requiring container tracking, or adding war risk clauses for unstable regions. Specific coverage varies by insurer and policy wordings, so exporters should confirm terms with their insurance broker.

Five Common Exporter Mistakes (and the Fix)

Analysis of trade disputes and documentary credit rejections reveals recurring Incoterms misapplications. Understanding these patterns helps exporters avoid costly errors.

Mistake 1: Using FOB for Container Shipments

The problem: An exporter quotes “FOB Hamburg” for containerized kraft paper rolls. The container leaves the mill gate on Monday, reaches the port on Wednesday, and loads onto the vessel on Friday. During Tuesday night, the container was damaged in a truck accident. Who bears the loss? The exporter, because FOB’s risk transfer (at ship’s rail) hasn’t occurred yet, despite losing physical control.

The fix: Quote “FCA – [Specific container freight station name and address], Hamburg” instead. Risk transfers when the container reaches the nominated facility and the carrier signs for it. The exporter’s exposure ends when they can no longer influence the goods’ safety. Document the exact handover point and obtain signed proof of delivery from the carrier—a Forwarder’s Cargo Receipt (FCR), CMR (road consignment note), or house airway bill timestamp provides clear evidence.

Mistake 2: Allowing Buyer-Insured CFR Without Coverage Verification

The problem: The exporter uses CFR, assuming the buyer will purchase adequate insurance. The shipment arrives damaged. The buyer’s insurance proves to be Institute Cargo Clauses (C) with high deductibles and specific exclusions. A claim dispute ensues, with the buyer demanding the exporter share costs despite risk having transferred.

The fix: Shift to CIP and control the insurance placement. Specify Institute Cargo Clauses (A) minimum in the contract. Name the buyer as additional insured or loss payee on the policy. Provide the buyer with the insurance certificate at shipment, demonstrating adequate coverage exists. If the buyer insists on CFR/CPT, require them to provide evidence of insurance coverage before shipment and confirm it meets mutually acceptable standards.

Mistake 3: Casual Acceptance of DDP Without Import Infrastructure

The problem: A buyer in Brazil requests DDP delivery. The exporter agrees to close the sale. Upon arrival, Brazilian customs requires a local tax registration number (CNPJ) and appoints a customs broker. The exporter has neither, causing weeks of demurrage charges and potential cargo abandonment.

The fix: Default to DAP or DPU for unfamiliar markets. If DDP is truly required for competitive reasons, invest in proper infrastructure first: engage a fiscal representative in the destination country, obtain tax registrations, appoint a reliable customs broker, and pre-clear the required documentation. Build these costs into pricing rather than discovering them mid-shipment. For occasional shipments, DAP plus buyer customs clearance proves far more practical.

Mistake 4: Vague Named Places Creating Documentation Mismatches

The problem: A contract states “FCA Mumbai.” The exporter delivers to one container freight station, the buyer expects another, and the bill of lading shows a third location. When a documentary credit is involved, the bank rejects documents due to discrepancies. Payment delays follow.

The fix: Specify the complete facility address including shed or bay numbers. “FCA – Gateway Distriparks CFS, Shed 7, JNPT, Navi Mumbai, Maharashtra 400707” leaves no ambiguity. Reference this exact named place in the commercial invoice, packing list, and transport document. For complex facilities, attach a site diagram showing the precise handover point. Require the buyer to acknowledge the named place in writing before contract signature. The documentary evidence—FCR, CMR, or airway bill timestamp—must match this location exactly.

Mistake 5: Ignoring Unloading Obligations Under DPU

The problem: An exporter agrees to DPU at the buyer’s warehouse. The container arrives, but the buyer’s forklift can only handle 2,000 kg loads while each kraft paper roll weighs 2,500 kg. The exporter assumed “delivered unloaded” meant the buyer would handle unloading. Disputes about who provides proper material handling equipment erupt.

The fix: Before accepting DPU, conduct a site survey or require detailed facility information. Confirm available material handling equipment capacity, dock height, and access constraints. In the contract, explicitly state which party provides unloading equipment and labor. “DPU – Buyer’s Warehouse XYZ, seller provides trucking with crane-equipped vehicle for unloading, buyer provides ground-level staging area” creates clarity. Price the unloading service into the quote if the exporter is providing it. Remember that under DAP, the seller does not unload—choose the rule that matches your physical capability.

Risk Management: Critical Exposures and Practical Mitigations

Effective Incoterms management requires anticipating failure points and building defenses before problems emerge.

Risk: FOB Used on Containerized Shipments

The exposure goes beyond technical non-compliance. Insurance underwriters may dispute claims for goods damaged between gate departure and vessel loading, arguing the policy doesn’t cover pre-shipment movement when FOB is stated. Carriers may also refuse responsibility, claiming the goods weren’t yet under their custody per the FOB terms.

Mitigation: Standardize FCA for all containerized freight. Train sales teams to recognize container shipments and default to FCA language. Update contract templates to replace FOB with FCA. When generating shipping instructions, ensure the named place reflects where handover actually occurs—typically the container freight station or the first carrier’s facility. Document the handover with a signed cargo receipt: FCR (Forwarder’s Cargo Receipt), CMR (Convention relative au contrat de transport international de Marchandises par Route), or house airway bill booking confirmation showing the carrier accepted the goods.

Risk: Inadequate Insurance Under Buyer-Booked Carriage

When exporters use CFR or CPT (freight paid by seller, insurance arranged by buyer), they have no visibility into coverage adequacy. Buyers often purchase minimum coverage to reduce costs, leaving significant exposure to common transit risks like container damage, theft from port storage, or moisture contamination.

Mitigation: Migrate to CIP as the standard term for significant-value shipments. Mandate Institute Cargo Clauses (A) coverage as the contract minimum. Structure the insurance certificate to name the exporter as the insured party with the buyer listed as additional insured and loss payee. This protects the exporter’s interest (they’ve been paid, but reputation suffers if goods arrive damaged) while ensuring the buyer can claim losses. Retain a copy of the insurance certificate with the shipment file for audit and potential claim support.

Risk: Accepting DDP Without Import Permits or Tax Infrastructure

Many countries impose strict requirements on import declarations: local tax identification, appointed customs brokers with physical presence, product registration for specific categories (food-contact paper grades), or compliance certificates. An exporter accepting DDP without these elements cannot legally clear customs, leading to storage charges, cargo abandonment, or forced sale at auction.

Mitigation: Use DAP as the default maximum obligation when destination capabilities are uncertain. Before accepting DDP for any customer or country, establish import infrastructure: engage a fiscal representative or local agent authorized to act on your behalf; obtain the destination country’s importer tax ID; appoint a licensed customs broker; and pre-clear all required permits, certificates of origin, and product-specific approvals. If a buyer insists on DDP for competitive reasons, build a flat “import administration fee” into pricing to cover broker fees, tax deposits, and administrative overhead. Document that DDP pricing assumes standard customs processing and that delays due to new regulatory requirements may trigger price adjustments.

Risk: Ambiguous Named Places Causing Disputes

“FCA Shanghai” could mean any of dozens of container freight stations, rail terminals, or port facilities. When the exporter delivers to Location A and the buyer expects Location B, the actual handover becomes contested. Documentary credits require exact matching between the credit terms and the transport document, so ambiguity creates rejection risk.

Mitigation: Use facility-level specificity: building names, shed numbers, GPS coordinates if necessary. “FCA – Shanghai Shengdong International Container Storage & Transportation Co., Warehouse 15, Gate 3, No. 2889 Waiqingsong Road, Qingpu District, Shanghai 201703” removes all doubt. In purchase orders and sales contracts, attach a facility diagram or Google Maps screenshot with the handover point marked. For complex logistics chains (e.g., FCA at an inland depot requiring rail movement to port), document each leg and confirm the risk transfer point corresponds to the moment you lose physical influence over cargo handling. Ensure the documentary evidence—FCR, CMR, or airway bill with timestamp—references this exact location.

The Exporter’s Decision Matrix

Selecting an appropriate Incoterm requires mapping your organization’s operational capabilities against customer expectations and route characteristics. Use this matrix to identify your optimal starting position for negotiations.

Situation	Operational Capability	Destination Complexity	Buyer Credit/LC	Recommended Baseline
Containerized rolls; port/rail handover	Limited origin resources	Standard (predictable customs)	Open account or LC	FCA
Containerized rolls; seller wants freight control	Freight contracts in place; claims support	Standard to Moderate	Open account or LC	CPT if buyer insures; CIP if seller insures (ICC-A)
Containerized rolls; fragile lanes/claims risk	Strong logistics + insurance admin	Moderate to Complex	Open account	CIP (mandate ICC-A, name beneficiaries)
Break-bulk reels; marine-only leg	Port stevedoring expertise	Standard	LC with marine docs	FOB/CFR/CIF (sea-only)
Buyer demands delivery to site	Local partner at destination	Complex (customs/tax sensitive)	Secure prepayment/LC	DAP (no unload) or DPU (seller unloads); avoid DDP unless fully compliant

Input Variables:

1. Primary transport mode: Containerized full container load (FCL), containerized less-than-container load (LCL), or break-bulk non-containerized?
2. Internal logistics competence: Does your organization have dedicated freight forwarding relationships, insurance programs, and international shipping expertise?
3. Destination market complexity: Is the buyer’s country known for straightforward customs, or are permits, registrations, and delays common?
4. Credit and payment terms: Is payment secured through letter of credit (requiring exact document compliance), or is it an open account (more tolerance for minor variances)?

Output Recommendations:

• High control appetite + containerized freight + capable team → Standardize on CIP
• Low control appetite + containerized freight + lean team → Standardize on FCA
• Moderate control + break-bulk → Consider CFR with buyer insurance verification
• Any situation involving unfamiliar import regulations → Maximum DAP, never DDP without infrastructure

This matrix should be converted into a one-page reference document for your sales and logistics teams, allowing quick alignment during quotation processes.

Sample Exporter-Friendly Clause Language

Contract precision reduces dispute risk. The following illustrative clauses demonstrate how to specify Incoterms with operational clarity. These examples are not legal advice and should be reviewed by qualified trade counsel before use.

Precise Named Place (FCA Example): “Delivery terms: FCA – Seller’s Mill, Loading Bay 7, Acme Kraft GmbH, Industriestraße 45, 21079 Hamburg, Germany. Risk and responsibility transfer to Buyer when Buyer’s nominated carrier or freight forwarder takes possession of the loaded container(s) at the specified loading bay and signs the Cargo Receipt (FCR) or CMR. Seller provides export customs clearance.”

Carriage and Insurance (CIP Example): “Delivery terms: CIP – Buyer’s Warehouse, 123 Industrial Estate, Navi Mumbai 400705, India. Seller arranges and pays for carriage to the named destination. Risk transfers to Buyer when goods are handed to the first carrier at Hamburg CFS. Seller provides marine cargo insurance meeting Institute Cargo Clauses (A) for 110% of invoice value, naming Buyer as loss payee.”

Unloading Specification (DPU Example): “Delivery terms: DPU – Buyer’s Distribution Center, Gate 4, 789 Logistics Park, São Paulo, Brazil. Seller is responsible for delivery and unloading of goods at the named place using Seller’s contracted trucking with crane-equipped vehicles. Buyer provides a safe ground-level staging area accessible to articulated trucks. Risk transfers to Buyer once goods are unloaded and signed for by Buyer’s receiving agent.”

Documentation Handover: “Upon shipment completion, Seller provides Buyer with: (1) commercial invoice, (2) packing list with net/gross weights and container seal numbers, (3) full set of clean on-board ocean bills of lading consigned to Buyer’s order, (4) certificate of origin Form A, (5) marine cargo insurance certificate per terms above. Documents transmitted via courier within 48 hours of vessel departure.”

These clauses should be adapted to specific transaction requirements, product types, and jurisdictional considerations. The core principle remains consistent: remove ambiguity by specifying who does what, when, where, and with what documentation.

Implementation Plan

Converting Incoterms knowledge into organizational practice requires deliberate internal alignment and customer education.

Internal Playbook Development

Sales teams need simple decision tools. Create a one-page cheat sheet mapping customer scenarios to recommended Incoterms. “Customer wants delivered pricing to Mumbai? → Offer CIP with Institute Cargo Clauses (A) insurance. Customer wants minimal freight involvement? → Offer FCA at our gate.” Include red flags: “Never accept DDP to Brazil without a pre-cleared import license.”

Operations teams require detailed standard operating procedures for each term. For FCA handovers, document the required steps: container loading, seal application, cargo receipt signature (FCR or CMR), export filing, and document package preparation. For CIP shipments, maintain a checklist: freight booking confirmation, insurance certificate issuance, bill of lading consignment instructions, and delivery notification protocols.

Finance and credit teams should understand payment trigger points. Under FCA, the exporter’s performance obligation ends at handover to the first carrier—documents can be presented promptly. Under CIP or DAP, the obligation extends until destination arrival, potentially delaying document negotiation under letters of credit. Align internal milestone tracking with Incoterms to prevent premature revenue recognition or delayed invoicing.

Customer Communication Scripts

Buyers may request familiar terms (FOB, CIF) based on habit rather than current best practice. Prepare brief explanations that reframe the conversation around risk management rather than technical compliance.

“We’ve standardized on FCA for containerized shipments rather than FOB because it provides you clearer risk transfer at the point where the carrier takes responsibility. This protects both of us from ambiguous exposure during inland transit to the port.”

“Our CIP quotation includes comprehensive Institute Cargo Clauses (A) insurance rather than the CIF minimum Institute Cargo Clauses (C). This broader coverage means potential claims—container damage, moisture exposure, handling issues—are more likely to be paid without disputes. The small premium difference saves significant time if problems occur.”

For buyers in emerging markets who may be less familiar with Incoterms 2020 updates, consider providing a brief educational document alongside quotations. PaperIndex Academy offers resources on international trade practices that can support these conversations.

Prepare responses to common objections. When a buyer insists on DDP: “We’re happy to explore DDP terms, but achieving compliant import clearance in [country] requires advance setup. We’d need 30 days to establish the necessary import registrations and customs broker relationships. For this immediate shipment, may we propose DAP where we deliver to your nominated customs broker, and you handle the import formalities with local expertise?”

Internally, maintain a lessons-learned log. When a particular Incoterm creates operational friction or dispute on a specific lane, document the issue and update your standard offering. This continuous improvement prevents recurring problems and builds organizational knowledge about which terms work smoothly in practice versus theory.

Connect with kraft paper buyers on PaperIndex to expand your export reach, or list your kraft paper company to access international buyer inquiries.

Frequently Asked Questions

Which Incoterms work best for containerized kraft paper?

For containerized shipments, FCA, CPT, and CIP align with operational reality. These terms accommodate the typical multimodal journey (truck to rail to vessel) and avoid the “ship’s rail” ambiguity inherent in FOB, CFR, and CIF. FCA suits exporters wanting minimal freight involvement; CIP suits those preferring control over routing and insurance.

Why do many exporters prefer CIP over CIF?

CIP mandates Institute Cargo Clauses (A), which provide “all risks” coverage with limited exclusions. CIF requires only Institute Cargo Clauses (C), covering major casualties but excluding many common damages—container crushing, moisture contamination, theft from port storage. The additional cost for Institute Cargo Clauses (A) coverage is typically a small percentage of the cargo value, but claims are generally settled much more efficiently.

When is DDP a bad idea for exporters?

DDP transfers maximum obligation to the exporter, requiring local import tax registrations, customs brokerage, and compliance with destination-country regulations. Unless the exporter has established infrastructure in the buyer’s country—fiscal representatives, clearing agents, regulatory permits—DDP creates risk of cargo holds, demurrage charges, and even abandonment. DAP provides delivered convenience while leaving import clearance to the party with local expertise.

Do Incoterms define title or payment terms?

No. Incoterms address only delivery obligations, risk transfer points, and cost allocation for logistics. Title to goods passes according to the sales contract or applicable law—often upon payment or as specified in documentary credit terms. Payment timing, methods, and security are separate contractual matters. Confusion on this point leads exporters to assume FOB means “payment on loading,” which is incorrect.

What should be specified in the “named place”?

The named place must be specific enough to prevent disputes. “FCA Hamburg” is insufficient; “FCA – Buss Terminal GmbH, Container Yard 3, Hohe-Schaar-Straße 28, 21107 Hamburg” provides the exact location. Include building numbers, gate designations, or GPS coordinates for remote facilities. The commercial invoice, transport document, and insurance certificate must all reference this identical named place to ensure documentary compliance. The handover document—FCR, CMR, or airway bill timestamp—must match this location exactly.

How does DPU differ from DAP?

DPU (Delivered at Place Unloaded) specifically requires the seller to unload goods at the destination. This replaced the former DAT (Delivered at Terminal) in Incoterms 2020. DAP (Delivered at Place) requires the seller to make goods available for unloading, but the buyer handles actual discharge. The distinction matters for container shipments to facilities without unloading equipment—DPU obligates the exporter to provide crane trucks or arrange terminal unloading.

Looking to expand your kraft paper export business? Find buyers in the paper industry from sound the world through PaperIndex’s specialized B2B marketplace, or submit an RFQ if you’re sourcing kraft paper from suppliers worldwide.

---

Disclaimer: Educational use only. PaperIndex explains market-intelligence and trade concepts to help readers transact safely. We do not sell pricing indices, forecasts, or custom research.

For kraft paper exporters, Incoterms choice is a risk-shift decision: who controls carriage, where risk transfers, and who insures. For containerized rolls, FCA/CPT/CIP usually align better than FOB/CFR/CIF (sea-only), while DAP/DPU/DDP increase seller obligations at destination. Match the term to your team’s logistics competence, insurance strategy, and buyer-market realities.

Our Editorial Process

Our expert team uses AI tools to help organize and structure our initial drafts. Every piece is then extensively rewritten, fact-checked, and enriched with first-hand insights and experiences by expert humans on our Insights Team to ensure accuracy and clarity.

About the PaperIndex Insights Team

The PaperIndex Insights Team is our dedicated engine for synthesizing complex topics into clear, helpful guides. While our content is thoroughly reviewed for clarity and accuracy, it is for informational purposes and should not replace professional advice.