When you buy CNC parts from abroad, the three letters printed next to the price determine your total cost and your risk. The Incoterms 2020 rules define who pays the freight, who handles export and import customs, and at which point responsibility passes to the buyer if the goods are damaged. This guide explains the rules used in practice for CNC part logistics from Turkey and how to choose correctly.
What Incoterms Define, and What They Don't
Incoterms define the following: the delivery point, the transfer of risk, freight and insurance obligations, export/import customs formalities and documents. They do not define: transfer of ownership, payment terms, quality and warranty conditions, or the consequences of a breach of contract. Incoterms therefore do not replace the sales contract or the quality agreement; they complement them.
Rules Used in CNC Part Trade
| Rule | Delivery point | Export customs | Main carriage | Import customs + VAT | Suitability for CNC parts |
|---|---|---|---|---|---|
| EXW (Ex Works) | Seller's factory | Buyer | Buyer | Buyer | Low — a foreign buyer cannot file the Turkish export declaration |
| FCA (Free Carrier) | Seller's factory or named place, handed to the carrier | Seller | Buyer | Buyer | High — ideal for buyers working with their own forwarder |
| CPT (Carriage Paid To) | Handed to the carrier; freight to destination paid by seller | Seller | Seller | Buyer | Medium — risk passes early, freight stays with the seller |
| CIP (Carriage and Insurance Paid To) | CPT + all-risk insurance | Seller | Seller | Buyer | Medium |
| DAP (Delivered at Place) | Buyer's address, ready for unloading | Seller | Seller | Buyer | High — one price; the buyer only handles import customs and VAT |
| DPU (Delivered at Place Unloaded) | Named place, unloaded | Seller | Seller | Buyer | Low — unloading responsibility rests with the seller |
| DDP (Delivered Duty Paid) | Buyer's address, all duties and taxes paid | Seller | Seller | Seller | Low — the seller must be VAT-registered in the EU |
FAS, FOB, CFR and CIF are for sea transport only and are used for bulk or container cargo; they are impractical for palletised CNC part shipments.
Why EXW Is Usually the Wrong Choice
EXW looks attractive because it shows the lowest price. However, under EXW the export declaration is the buyer's responsibility, and in Turkey an export declaration can only be filed in the name of a company established in Turkey. In practice the seller files it "in good faith", but responsibility remains unclear. Issuing the A.TR or EUR.1 document also depends on the exporter. The solution is simple: use FCA instead of EXW. The price is almost identical, but export customs and document responsibility clearly stay with the seller.
FCA or DAP?
- FCA Istanbul: if you have your own contracted forwarder, if you consolidate cargo from several Turkish suppliers, or if your freight rates are better than the supplier's. You manage the transport risk and organisation.
- DAP [your address]: if you want a single price, if you have no logistics department, or if this is your first order. The seller takes on export customs, freight and the risk up to the destination; you only pay import customs and VAT. Because most Turkish exporters work with forwarders running weekly groupage services to Europe, DAP freight is usually competitive.
For EU buyers, import customs and VAT are handled by your customs broker in both cases; with the A.TR certificate the customs duty is zero and the VAT is deductible.
Why DDP Is Rarely Used
Under DDP the seller also pays the import VAT. If the Turkish seller has no VAT registration in the EU, it cannot recover this VAT and adds it to the price; the buyer ends up paying, via the supplier, a tax it could have deducted itself. The result: an unnecessary 19–27% cost. DDP only makes sense if the seller has a fiscal representative or VAT registration in the destination country. In most cases DAP plus your own customs broker is cheaper and cleaner.
Insurance
Under FCA transport insurance is the buyer's decision, under DAP the seller's (Incoterms only make insurance mandatory under CIP and CIF). For high-value CNC batches, the forwarder's standard liability (limited per kilogram under the CMR Convention) usually does not cover the value of the parts; additional cargo insurance at around 0.1–0.3% of the batch value is recommended.
Comparing Quotes on Equal Terms
If one supplier quotes EXW and another DAP, you cannot compare the prices directly. State the delivery term and the destination address in your RFQ; ask suppliers to quote only on that basis, or to show freight as a separate line item. You will find a ready-made template for this field in our RFQ guide. Tornelle quotes FCA Istanbul by default and shows the DAP price on a separate line on request.
Frequently Asked Questions
Which Incoterms rule is most common when buying CNC parts from Turkey?
FCA and DAP. Although EXW appears common on paper, because of the export declaration issue it is applied like FCA in practice; writing FCA is recommended for clarity.
Who pays the import VAT under DAP?
The buyer. The seller takes care of export customs and freight; the import declaration and VAT are handled through the buyer's customs broker.
Can a contract still use the Incoterms 2010 rules?
Yes, if the parties agree, but for new contracts it is recommended to use Incoterms 2020 and to state "Incoterms 2020" explicitly in the contract.
Which rule is used for air freight?
FCA (airport) or DAP. Sea rules such as FOB and CIF are not used for air freight.
Conclusion
Choosing the right Incoterms rule for CNC part imports eliminates hidden costs and gaps in responsibility: FCA if you have your own forwarder, DAP if you want a single price; avoid EXW and DDP. State the delivery term in your request and send us your drawings via our quote form; you will receive a quote showing FCA and DAP prices on separate lines.
