Pick your term(s)
FOB — Free On Board (sea only)
The classic SA import term: supplier delivers on board; you shop the freight, insurance and clearing.
| Who pays… | FOB |
|---|---|
| Export clearance | Seller |
| Origin inland transport | Seller |
| Loading (main carriage) | Seller |
| Main carriage (freight) | Buyer |
| Insurance obligation | Buyer |
| Import clearance | Buyer |
| SA duty & VAT | Buyer |
| Delivery to your door | Buyer |
FOB: risk & SARS customs value
Risk passes to you: When the goods are on board the vessel
Customs-value effect: Invoice ≈ the SARS customs value — the cleanest term for ZA declarations.
Frequently asked questions
What is the best Incoterm for a South African importer?
FOB (sea) or FCA (any mode) suit most SA importers: you control and can shop the international freight, insurance and clearing, while the supplier handles export formalities in their own country. EXW gives maximum control but makes you responsible for export clearance in a foreign country; CIF/CFR hide the freight margin in the goods price; DDP is usually the worst buy — the supplier marks up SA duty and VAT you could have managed yourself.
Why is DDP a problem when importing into South Africa?
Under DDP the foreign supplier is responsible for South African duty and VAT — so they estimate it, mark it up, and bury it in the price. You typically cannot claim that import VAT as an input deduction because the clearance wasn't in your name, and you have no visibility of the declared customs value being right. Ask for DAP or FOB instead.
Does my Incoterm change the customs value SARS uses?
The SARS customs value is FOB-based regardless of the term — but your invoice price includes different costs under different terms, so the adjustment differs. An EXW price needs origin-country transport and loading costs added to reach FOB; CFR/CIF/DAP prices need international freight and insurance stripped out. Getting this adjustment wrong is a classic over- or under-declaration.
Where does risk transfer from seller to buyer under Incoterms 2020?
It depends on the term: at the seller's premises for EXW; when loaded on board the vessel for FOB, CFR and CIF (note — risk passes at loading under CFR/CIF even though the seller pays the freight); at handover to the first carrier for FCA, CPT and CIP; and at the destination for DAP, DPU and DDP.