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    Incoterms 2020 Explained: All 11 Rules in Plain English (2026 Guide)

    TL;DR: Incoterms 2020 are the 11 standardized trade rules published by the International Chamber of Commerce. They define exactly where seller responsibility ends and buyer responsibility begins.

    Here is the plain-English breakdown.

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    By Sanjay Sachdev, Partner & Head of SourcingUpdated April 202630+ yrs sourcing experience

    The 7 Multi-Modal Incoterms

    EXW, FCA, CPT, CIP, DAP, DPU, DDP β€” for any mode of transport.

    The 4 Sea & Inland Waterway Incoterms

    FAS, FOB, CFR, CIF β€” only for ocean and inland waterway shipments.

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    Frequently Asked Questions

    What are Incoterms used for?

    Incoterms standardize the legal responsibilities, costs, and risks between buyer and seller in international trade.

    How do I get started with Small World India?

    Send us your product specs or reference images via the contact form. Within 48 hours we shortlist 3 vetted factories with FOB pricing, MOQ, and lead times β€” at no cost.

    What is the typical MOQ for sourcing from India?

    MOQs range from 100 units (jewelry, handicrafts) to 5,000+ units (textiles, packaging). We negotiate flexible MOQs for first orders and combine SKUs across factories when needed.

    How does Small World India ensure product quality?

    Every order includes factory audit, mid-production inspection, and pre-shipment AQL 2.5 inspection by our in-house QC team. You receive photos, videos, and a full inspection report before shipment leaves the port.

    Which countries do you ship to?

    We export to 50+ countries with primary buyer concentration in the USA, UK, Germany, France, Netherlands, Australia, Canada, UAE, and Japan. We handle FOB, CIF, and DDP terms.

    What are your fees?

    Standard sourcing commission is 5–10% of FOB value, billed only after you confirm a PO. Inspections and freight are billed at cost with no markup.

    Why source from India instead of China in 2026?

    India offers FTA duty advantages with UK/AU/UAE/Japan, no Section 301 tariffs for US importers, English-speaking factories, lower IP risk, and competitive pricing in 25+ verticals including apparel, decor, jewelry, leather, and engineering.