Delivery terms for custom bag orders

Compare the delivery scope before the unit price

When comparing custom-bag quotations, ask each supplier to state the delivery rule, exact named place and version, then list the costs still payable by the buyer. Keep the bag specification, quantity, packing and shipping window identical. This gives a lower unit price a meaningful basis for comparison.

Incoterms® rules allocate delivery obligations, costs and risk between seller and buyer. As the International Trade Administration explains, they do not settle payment timing or ownership transfer. Put those matters, sample approval and remedies for defective goods in the sale agreement separately. This guide uses the 2020 edition and selected rules relevant to discussing bag shipments.

Read the delivery point in each rule

The table summarises standard delivery points and questions for the quotation. The supporting explanations cover EXW and FCA, FOB and CIF risk transfer, and DAP and DDP. Use the full rule and agreed contract for the actual transaction, including obligations that can affect risk before normal delivery.

FOB and CIF are for sea or inland-waterway transport; EXW, FCA, DAP and DDP can be used across transport modes. The ITA overview lists these transport groups. For a courier or air shipment, select a rule that fits that mode instead of carrying over a sea-freight abbreviation from an old quotation.

Match the rule to the physical handover

Under FCA at the seller's premises, the seller loads the buyer's collecting vehicle. At another agreed location, the seller brings the goods on its vehicle, ready for unloading for the nominated carrier. Both cases put export clearance with the seller. These distinctions appear in the ICC's FCA explanatory notes. Write the address and handling point into the order.

For cartons handed to a consolidator or container terminal before vessel loading, discuss FCA with the forwarder. ICC's selection checklist points to FCA for container or multimodal movements and terminal handovers. Choose around the real handover arrangement; merely travelling by ship does not make FOB the best fit.

Give every bidder the same carton count, outside dimensions, gross weight and pallet assumptions. Include any warehouse appointment or unloading constraint. The packaging and carton guide helps prepare these inputs. If one quotation assumes loose cartons and another assumes pallets, ask for revised figures before comparing them.

Separate prepaid freight from cargo risk

A CIF price includes seller-arranged carriage and insurance to the named destination port, while cargo risk normally passes when the goods are on board at shipment. The ICC Academy explanation of C and D rules highlights this separation. Ask the quotation to identify both the shipment port and the paid-to destination; do not read “freight included” as a promise that the seller carries every transit risk.

Insurance needs its own review. ICC Academy compares the default cover: CIF generally calls for Institute Cargo Clauses (C) or equivalent, while CIP generally calls for the broader Clauses (A) or equivalent, unless otherwise agreed or customary in the trade. Ask the insurer to confirm cover for the actual bags, route, exclusions and claim documents before accepting the insured quotation.

For a custom printed or knitted bag, record the order value, packing specification and shipment references with the insurance file. Obtain the policy or certificate and the claim contact. Those practical records make a damage report easier to prepare; they do not establish that a particular loss is covered.

Check who can carry out the import arrangement

Before accepting DDP, identify the party that will lawfully handle import clearance, the broker and the destination's required registrations. ICC's work on national regulatory barriers explains why local requirements can complicate a foreign seller's use of DDP. Request a written plan for the actual destination and shipment, with duties and taxes accounted for.

Also agree how the shipment is received. Under DAP and DDP, the seller's normal delivery point is before unloading. ICC's explanatory notes add that unloading costs already incurred under the seller's carriage contract cannot be charged to the buyer again unless otherwise agreed. Confirm the unloading service and charges explicitly, particularly for a warehouse without handling equipment.

Use the customs paperwork guide to assign invoice, packing-list and product-data checks. If a quote is labelled DDP but sends import clearance or duties back to the buyer, have the parties resolve the wording and responsibilities before approval. A shortened label should not leave the actual arrangement ambiguous.

Bring quotations to the same cost boundary

Choose a comparison endpoint, such as your warehouse with goods ready to unload. For each quotation, mark every relevant charge as included, separately quoted, estimated or unresolved. Check origin handling, main freight, insurance, destination handling, clearance, duties/taxes and final delivery with the party responsible. Add only costs missing from that quotation, so an included service is counted once.

Build the comparison from written, dated quotations: comparable subtotal = supplier quotation total + confirmed buyer-paid costs not already included, using the same agreed scope and endpoint. Attach the source quotation to each amount. If currencies differ, record the conversion rate, its source and date; use the same basis for every offer.

Keep estimated and unresolved charges in separate fields, with the responsible party and confirmation date. An unknown amount is not zero. Do not describe a subtotal as a complete delivered budget while required costs remain missing. Align insurance and unloading coverage, then compare confirmed totals and the remaining responsibilities. This worksheet requires the actual order and route; it supplies no market prices or freight rates.

Write the place, timing and changes into the order

Use a completed phrase such as “FCA [full handover address and point], Incoterms® 2020” or “DAP [full receiving address and point], Incoterms® 2020.” Replace the brackets before approval. Confirm access hours, booking contact and whether a terminal or warehouse is intended. The ICC Academy discussion of named places explains why a vague city or port reference can leave the delivery point disputed.

Keep cargo-ready date, pickup window, estimated transit and required arrival date in separate fields. State how long the freight quotation remains valid and when it must be refreshed. If packing, route, transport mode or destination changes after sampling, request a revised delivery scope and cost sheet, then approve the matching version with the order.

Add a delivery brief to the RFQ

• Product baseline: style, materials, decoration, approved size, quantity and packing revision.
• Rule and place: requested Incoterms® 2020 rule, full address or port, and exact handover point.
• Transport: mode, carton and pallet data, booking responsibility and receiving restrictions.
• Costs: included services, separate charges, unresolved amounts and quotation validity.
• Import and insurance: responsible parties, confirmed registration needs, cover and claim contact.
• Schedule and approval: cargo-ready date, collection window, arrival requirement and change approver.

Select the bag or attach a reference from the product catalogue, then send the specification and delivery brief through the RFQ form. Ask which delivery arrangements can be quoted for that order and compare only after the included services and remaining responsibilities are clear.