Incoterms for Prefab and Container Building Purchases: EXW, FOB, CIF and DAP Explained

When you buy prefab or container buildings from Turkey, the Incoterm on your quotation decides who pays for and who carries the risk of each step between our factory and your site. EXW gives you the lowest price but the most work; FOB and FCA are the most common for buyers with their own freight forwarder; CIF and CIP add main freight and insurance to a port; and DAP delivers to your site or a named place, with import duties left to you. Comparing quotations with different Incoterms is the most common reason buyers misjudge the real cost of a project.

What are Incoterms and why do they matter?

Incoterms are standard trade terms that define, for international sales, where the seller's responsibility ends and the buyer's begins: who arranges and pays for loading, export clearance, main freight, insurance, unloading and import clearance, and at what point the risk of loss or damage passes. Prefab buildings are bulky, often shipped in many packages and sometimes delivered to remote sites, so these steps represent a large share of the total cost.

The Incoterms most used for prefab exports

• EXW – Ex Works: We make the goods available at our facility. The buyer handles loading, export clearance and all transport. Lowest quoted price, highest buyer workload.
• FCA – Free Carrier: We hand the goods, export-cleared, to the buyer's carrier at an agreed place (our facility or a terminal). Suitable for road and container shipments.
• FOB – Free On Board: We deliver the goods loaded on board the vessel at the Turkish port of shipment, export-cleared. Used for sea freight only.
• CFR / CIF – Cost and Freight / Cost, Insurance and Freight: We pay main sea freight to your port (CIF adds minimum insurance cover). Risk passes to the buyer once goods are on board in Turkey.
• CPT / CIP – Carriage Paid To / Carriage and Insurance Paid To: The multimodal equivalents of CFR/CIF, used for road and container transport. CIP requires a higher insurance cover.
• DAP – Delivered at Place: We deliver to a named place (often your site or a warehouse), ready for unloading. Import duties and clearance remain with the buyer.
• DDP – Delivered Duty Paid: The seller also handles import clearance and duties. Rarely used for prefab exports because import rules and taxes vary widely by country.

Who pays what comparison table

*When FCA delivery takes place at the seller's premises.

Which Incoterm should you choose?

• You have a trusted freight forwarder and want the lowest product price: FCA (road / container) or FOB (sea).
• You want one supplier to manage everything to your country: CIF / CIP to your port, or DAP to site.
• Your site is reachable by road from Turkey: DAP with Konter and İnter Lojistik is usually the simplest solution — one contract from factory to site.
• You are bidding in a public tender: Follow the tender's required Incoterm and request quotations on exactly that basis.

We generally advise against EXW for buyers without a representative in Turkey, because the buyer then becomes responsible for export clearance in Turkey.

Payment terms for export orders

Payment terms are agreed project by project and stated in the quotation.

Comparing quotations correctly

Before comparing two offers, check that both use the same:

1. Incoterm and named place or port
2. Product specification: panel type and thickness, steel profile thickness, insulation, electrical standard
3. Scope: furniture, air conditioning, sanitary ware, assembly, supervision
4. Packaging and loading plan (how many trucks or containers)
5. Currency, validity date and payment terms
6. Delivery time

Convert every offer to the same Incoterm — ideally a landed cost at your site — and compare totals, not unit prices. A cheaper unit price shipped in twice as many containers is often the more expensive offer.

Frequently Asked Questions

Which Incoterm is best for buying container buildings? +

FOB or FCA if you have your own forwarder; CIF/CIP to your port or DAP to site if you want the supplier to manage transport.

Does Konter offer DAP delivery to site? +

Yes. For road destinations we offer DAP through our group company İnter Lojistik; for sea shipments, DAP can be quoted to a named place.

Who pays import duties? +

Under all Incoterms except DDP, import duties and taxes are paid by the buyer.

Is insurance included in CIF? +

Yes, CIF requires the seller to buy minimum insurance cover for the buyer's benefit. Many buyers request higher cover, which can be added.

Can I pay by letter of credit? +

Yes, letters of credit are accepted for export orders, subject to agreement on the issuing bank and terms.

Why is an EXW price lower than FOB? +

EXW excludes loading, export clearance and transport to the port, which the buyer must then arrange and pay for in Turkey.