The Incoterms® (International Commercial Terms) of the International Chamber of Commerce define the responsibilities of seller and buyer in international transactions. Their incorrect use is one of the most frequent causes of unexpected costs and disputes in international trade. Mistake 1: Using FOB for containers. The term FOB (Free On Board) was designed for bulk goods loaded on board the vessel. For containers, which are delivered to the terminal before loading, the correct term is FCA (Free Carrier). Using FOB for containers creates ambiguity regarding liability during the period between delivery to the terminal and actual loading on board. Mistake 2: Confusing DAP and DDP. With DAP (Delivered at Place) the seller delivers the goods to destination but does not handle import customs clearance. With DDP (Delivered Duty Paid) the seller also assumes the costs and risks of customs clearance. Many importers choose DDP without verifying that the supplier is actually able to clear customs in the country of destination. Mistake 3: Not specifying the delivery point. Writing 'CIF Milan' without specifying the exact address or delivery terminal generates uncertainty and potential additional costs for local transport. It is essential to always indicate a precise delivery point. Mistake 4: Ignoring insurance coverage. The terms CIF and CIP include the seller's obligation to arrange insurance, but the minimum coverages are very different: CIF requires only minimum coverage (Clause C), while CIP 2020 requires All Risks coverage (Clause A). Always verify the actual coverage. Mistake 5: Not aligning Incoterms with the letter of credit. If the bank requires specific documents (e.g. a marine bill of lading) and the chosen Incoterm does not provide for their issuance, a payment block occurs. Always coordinate the choice of Incoterm with the payment conditions. Franzosini SA offers specialist advice on choosing the most suitable Incoterms for each commercial transaction. Our team can assist you in reviewing sales contracts and training commercial staff.