International trade uses standard Incoterms and industry acronyms. Misunderstanding these can cost you thousands on a single shipment.
Key Incoterms
- EXW (Ex Works): Buyer collects goods at the factory — maximum buyer responsibility
- FOB (Free On Board): Seller delivers to port; buyer pays ocean freight and insurance
- CIF (Cost, Insurance & Freight): Seller pays freight and insurance to destination port
- DDP (Delivered Duty Paid): Seller handles everything including import duty
Common Acronyms
- MOQ: Minimum Order Quantity
- OEM / ODM: Original Equipment / Design Manufacturer
- PI: Proforma Invoice
- BL: Bill of Lading
- LC: Letter of Credit
- QC: Quality Control inspection
Master these terms before signing your first supply contract. Nigeria Metro resources are here to guide you at every step.