FOB, CIF, CIP, DAP: The Incoterms That Decide Your Real Cost of Gold

Two quotes for the same gold can look very different – not because the gold differs, but because of one three-letter code: the Incoterm. Incoterms decide who arranges and pays for export clearance, freight, insurance and import duties, and exactly where risk passes from seller to buyer. Understanding gold Incoterms is how you compare offers fairly and avoid surprise costs landing on your side after the deal is done.

This guide explains the four Incoterms that matter most for gold – FOB, CIF, CIP and DAP – what each means for your responsibilities, and which one actually applies when gold ships by air. It is written from the perspective of a licensed exporter that ships gold from the DRC and Uganda. For the full transaction process, start with our pillar guide on how to buy gold in Africa safely.

What Incoterms are – and why they decide your real cost

Incoterms (International Commercial Terms, published by the International Chamber of Commerce) are the global standard for defining buyer and seller responsibilities in a shipment. They do not set the price of the gold; they set who bears each cost around it – export documentation, main carriage, cargo insurance, and import duties – and the precise point at which risk transfers. That is why two offers are only comparable when they are quoted on the same Incoterm. A lower headline quote on one Incoterm can cost more overall than a higher quote on another once you add the freight, insurance and duties it leaves to you.

The four gold Incoterms that matter

FOB – Free On Board

The seller clears the goods for export and places them on board the vessel at the named port; from that point, cost and risk pass to the buyer, who arranges and pays for main carriage, insurance and import. Important: FOB is a sea / inland-waterway term. Because gold almost always travels by air, FOB is frequently quoted loosely but is not technically the correct term – watch for this.

CIF – Cost, Insurance and Freight

The seller pays for carriage and insurance to the named destination port, but risk passes to the buyer once the goods are loaded at origin (the seller’s insurance covers the buyer in transit). Like FOB, CIF is a sea-only term, so it is not the right fit for air-freighted gold.

CIP – Carriage and Insurance Paid To

The seller arranges and pays for carriage and insurance to the named destination, for any mode of transport, including air. Risk passes when the goods are handed to the first carrier, but the seller’s insurance covers the journey. For gold shipped by air, CIP is the standard, balanced choice – and the basis on which we commonly ship.

DAP – Delivered At Place

The seller delivers the goods, ready for unloading, at a named place in the destination country, bearing risk for the whole journey there. The buyer handles import clearance and duties. DAP suits buyers who want delivery as close to their door as possible while still managing their own import.

Who pays what: a quick comparison

Responsibility	FOB*	CIF*	CIP	DAP
Export clearance & documents	Seller	Seller	Seller	Seller
Main carriage (freight)	Buyer	Seller	Seller	Seller
Cargo insurance	Buyer	Seller	Seller	Seller
Import clearance & duties	Buyer	Buyer	Buyer	Buyer
Risk passes to buyer at…	On board (origin)	On board (origin)	First carrier (origin)	Named place (destination)

*FOB and CIF are sea/inland-waterway terms; for air-freighted gold, CPT/CIP (and DAP) are the technically correct equivalents.

Which gold Incoterm should you choose?

For most international gold shipments moving by air, CIP is the practical, balanced choice: the seller arranges and pays for insured carriage to the destination, while the buyer manages import as the importer of record. DAP suits buyers who want delivery taken further into the destination country. FOB and CIF, despite being widely quoted, are sea terms and a poor technical fit for gold – if you see them on an air shipment, ask the supplier to clarify. We commonly ship on CIP (Incoterms 2020), with DAP available by agreement.

How Incoterms fit the gold journey

For gold sourced in the DRC, the Incoterm sits on top of the real logistics: because of restrictions on direct DRC export, consignments are routed through Uganda (Entebbe) or Tanzania (Dar es Salaam), then flown insured and tracked to the destination – typically CIP – before final assay and settlement at the buyer’s nominated refinery. The Incoterm defines who carries the cost and risk along that path. For the documentation behind it, see our guide to the gold export procedure from the DRC, and for the Dubai route specifically, our ship gold to Dubai guide.

Comparing quotes the right way

• Compare like with like. Only compare two offers if they are on the same Incoterm.
• Account for what is excluded. A quote that leaves freight, insurance or duties to you is not as low as it first looks.
• Confirm insurance. Under CIP/CIF the seller insures the cargo – check the cover and that the Air Waybill is issued to you.
• Know where risk passes. This determines who bears any loss in transit.
• Plan for import. Under all four terms here, the buyer handles import clearance and duties at destination.

How Congo Rare Minerals handles delivery terms

Congo Rare Minerals (Reg. No. CD 893220) commonly ships on CIP (Incoterms 2020), arranging insured, end-to-end tracked air freight through the documented Uganda/Tanzania corridor, with the Air Waybill issued to the buyer and settlement based on final assay at the buyer’s nominated refinery. DAP is available by agreement. We set out the Incoterm and what it includes in a written quote, so your responsibilities are clear before you commit. You can review our operations on the About page.

Frequently asked questions

What are Incoterms in a gold transaction?

Incoterms are the international standard defining who pays for export clearance, freight, insurance and import duties, and where risk passes from seller to buyer. They shape your real landed cost – though they do not set the price of the gold itself.

What is the difference between FOB and CIF for gold?

Under FOB the buyer arranges and pays for main carriage and insurance; under CIF the seller pays carriage and insurance to the destination port. Both are sea terms, so for air-freighted gold the correct equivalents are CPT and CIP.

Which Incoterm is best for gold shipped by air?

CIP (Carriage and Insurance Paid To) is the standard for air-freighted gold: the seller arranges and pays for insured carriage to the destination, and the buyer handles import. DAP is an option for delivery further into the destination country.

Who pays import duties on gold?

Under FOB, CIF, CIP and DAP, the buyer (as importer of record) is responsible for import clearance and any duties or taxes at the destination.

Why do two gold quotes differ so much?

Often because they are on different Incoterms. A quote that excludes freight, insurance or duties shifts those costs to you – always compare offers on the same Incoterm.

What Incoterm does Congo Rare Minerals use?

We commonly ship on CIP (Incoterms 2020), with DAP available by agreement, arranging insured, tracked air freight and settling on final refinery assay.