Machinery exports from Taiwan's central industrial corridor often involve crated units, specialized lifting, and installation support at the destination factory. Incoterms 2020 define where your responsibility ends and the buyer's begins — but the right choice depends on your freight relationships and the buyer's customs capability.
FOB Kaohsiung — common but not always ideal
Free on Board places risk transfer at the ship's rail once goods pass export clearance. Many European buyers request FOB because they control ocean freight and insurance. If your team lacks experience with export declaration timing or port handling for oversized crates, FOB can expose you to demurrage charges caused by documentation delays on the Taiwan side.
CIF — when you arrange freight
Cost, Insurance, and Freight obligates you to contract carriage and minimum insurance to the named port. Buyers may prefer this when they lack freight contracts. Your margin must account for insurance gaps: CIF requires only minimal cover, and buyers often need broader protection for high-value equipment.
DAP — door delivery without import clearance
Delivered at Place pushes your responsibility to the buyer's facility, excluding import duties and customs clearance. Useful when you coordinate with a freight forwarder experienced in project cargo but the buyer handles import formalities. Clarify who arranges unloading and whether installation is in scope — Incoterms do not cover installation unless explicitly added in contract language.
Document the agreed term in both the sales contract and the commercial invoice. Mismatch between what sales promised and what logistics executed is a recurring source of disputed freight invoices in our client work.