Customer wants door delivery; sales verbally agrees. Contract still prints FOB. After port—customs, inland haul, demurrage—who pays? Often margin, quietly. FOB and DDP are not wording preferences—they are responsibility interfaces: when risk transfers, who imports, who insures. Mixing means unpriced service given free—one bad shipment eats profit.
Terms must be unique through quote, contract, booking, insurance, and system nodes.
One Shipment, One Term
Lock Incoterms version and place at order (e.g. FOB Ningbo, DDP Riyadh). System generates payable items and risk nodes by term—no "also help clear customs" at shipment. Term change requires re-quote and contract amendment.
- DDP: calculate duty, VAT, broker, last mile—write into cost.
- After FOB, port charges if advanced must be recoverable from customer with instruction.
- Insurance follows terms—mixing most often means damage nobody claims.
Terms as System Fields
Not in remarks. The XYN digital intelligence system binds trade terms to orders and shipment costs—margin sees real freight. Mixing stays verbal—finance discovers at year-end those "great service" orders were losses.
Sample ten contracts vs actual operations for same term. Mismatch—fix process before expanding DDP service.
