EXW gives the buyer responsibility from the seller's premises with very limited seller delivery obligations. FCA makes the seller deliver the wine, export cleared where applicable, to a named carrier or place. DAP makes the seller arrange carriage to a named destination while the buyer handles import clearance and import charges. The right term depends on who can actually control each hand-off.

Incoterms clarify delivery tasks, costs and risk. They do not by themselves settle title, payment, quality acceptance or every regulatory duty.

What an Incoterm decides

The International Chamber of Commerce describes Incoterms as eleven three-letter rules used in sale contracts to clarify tasks, costs and risks in delivery. Incoterms 2020 is the current edition and entered into force on 1 January 2020.[1]

For a wine order, write the rule, named place and edition:

FCA [full named place], Incoterms 2020

“FCA Italy” is incomplete. The named place determines the physical hand-off. A cellar gate, consolidation warehouse and freight terminal create different responsibilities.

The sale contract should separately address:

  • title and payment;
  • product specification;
  • label and document approval;
  • inspection and rejection;
  • insurance;
  • temperature and handling standards;
  • shortage and damage claims;
  • regulatory responsibilities;
  • governing law.

An Incoterm cannot rescue a weak product schedule.

EXW: maximum pickup responsibility for the buyer

Under EXW, the seller makes goods available at its premises or another named place. The buyer carries the transport burden from that point.

EXW can work when the buyer or its forwarder has:

  • reliable collection access;
  • authority to coordinate local pickup;
  • a workable export-clearance plan;
  • control of consolidation;
  • suitable insurance;
  • experience resolving missed collections and loading issues.

It can be awkward when the buyer is abroad and cannot perform formalities or manage a rural collection. A low visible wine price may simply exclude the work that appears later on the freight invoice.

Ask:

  • Who loads the cases onto the collecting vehicle?
  • Who books and pays the pickup?
  • Who supplies export data?
  • Who completes export formalities for a shipment leaving the EU?
  • What happens if the truck arrives outside cellar hours?
  • Where does risk transfer under the selected term?

If the operational answers contradict EXW, choose a term that reflects reality.

FCA: a defined carrier hand-off

FCA requires the seller to deliver to the carrier or another person nominated by the buyer at the named place. For international movements, it is designed to place export clearance with the seller where applicable.

FCA can suit buyers who want to control main carriage but need the Italian seller to handle the origin hand-off. It is often useful for consolidation because the named place can be a forwarder's hub rather than every estate.

There are two practical variants:

  • FCA seller's premises, where loading responsibilities follow the rule;
  • FCA another named place, where the seller transports the goods to that point.

Spell out the exact address and receiving window. Also state whether consolidation, palletisation and any re-labelling occur before or after delivery under the sale term.

FCA is not automatically cheapest. The seller may price inland transport and handling into the quotation. The advantage is clearer allocation, not guaranteed savings.

DAP: seller-arranged carriage to destination

Under DAP, the seller arranges transport to the named destination and delivers the goods ready for unloading. The buyer handles import clearance and import duties or taxes.

DAP can reduce coordination for a small buyer because the seller manages more carriage. It can also reduce transparency if the quotation hides route, provider, insurance and accessorial charges.

Before accepting DAP, ask:

  • What exact destination is named?
  • Is unloading included?
  • Who is importer of record?
  • Who clears excise or customs formalities?
  • Which taxes and duties remain for the buyer?
  • What transport conditions apply?
  • Is insurance included, and on what basis?
  • Can the buyer see tracking and shipment documents?
  • What charges apply for failed delivery or waiting time?

“Delivered” is not the same as “duty paid”. DAP leaves import clearance and import charges with the buyer. If a seller proposes to carry those obligations, the parties may be discussing another structure and need specialist review.

Compare the three terms

Decision: Main carriage booked by
EXW: Buyer
FCA: Buyer
DAP: Seller

Decision: Origin hand-off
EXW: Seller's named place
FCA: Named carrier or place
DAP: Seller manages carriage to destination

Decision: Import clearance
EXW: Buyer
FCA: Buyer
DAP: Buyer

Decision: Buyer control of carrier
EXW: High
FCA: High
DAP: Lower

Decision: Buyer origin workload
EXW: High
FCA: Medium
DAP: Lower

Decision: Need for precise named place
EXW: Essential
FCA: Essential
DAP: Essential

This is a buyer-level summary, not a substitute for the ICC rulebook or contract advice.

Risk transfer and insurance

Risk does not necessarily transfer when the invoice is issued, when title passes, or when the wine arrives. It transfers at the delivery point defined by the selected rule.

Map the physical journey:

  1. cellar storage;
  2. loading;
  3. origin collection;
  4. consolidation;
  5. terminal or port;
  6. main carriage;
  7. destination terminal;
  8. final delivery;
  9. unloading and warehouse receipt.

Mark the risk-transfer point, then make sure insurance covers the appropriate party before and after it. Ask whether temperature-related deterioration, ordinary leakage and concealed damage are covered or excluded. Insurance terms require policy review, not assumptions.

Temperature belongs in the contract

An Incoterm allocates risk but does not define an acceptable temperature profile. Wine can be carried under any of these terms in unsuitable conditions if no one specifies the service.

Add operational instructions:

  • season and route;
  • standard dry, insulated or temperature-controlled service;
  • prohibited dwell locations or timing where realistic;
  • data logger requirement;
  • acceptable receiving evidence;
  • notice deadline for damage;
  • holdback sample and inspection process.

The buyer paying for main carriage under EXW or FCA has more direct control over the service selection. Under DAP, the buyer should still require disclosure of the agreed handling standard.

Mixed-estate orders

Incoterms apply to each sale contract. If five estates sell separately, five FCA terms do not magically become one transaction when their cases meet at a hub.

Confirm:

  • who owns each case during consolidation;
  • whether one exporter resells the goods;
  • whether invoices remain separate;
  • who prepares the final packing list;
  • whose insurance covers hub storage;
  • when risk passes for each producer;
  • who resolves a shortage found after repacking.

If Winesal or another partner is the contracting seller, request the exact term and named place in its quotation. Do not infer the legal structure from a portfolio webpage.

Three buyer scenarios

Experienced importer with a nominated forwarder

FCA at a known Italian hub may offer control and a manageable origin hand-off. The buyer can compare freight providers and consolidate several collections.

Small retailer using a warehouse partner

DAP to the approved destination may reduce operational work, provided import and excise responsibilities are clearly assigned and the total charge is transparent.

Buyer collecting several estates directly

EXW may look attractive but creates the most origin coordination. Compare it with FCA at each cellar and FCA at one hub. The result depends on real pickup and handling quotations.

These are decision patterns, not recommendations for every business.

A quotation comparison template

Normalise quotations before selecting a term.

Cost or responsibility: Incoterm and named place
Quote A:
Quote B:
Quote C:

Cost or responsibility: Product value
Quote A:
Quote B:
Quote C:

Cost or responsibility: Origin pickup
Quote A:
Quote B:
Quote C:

Cost or responsibility: Export clearance
Quote A:
Quote B:
Quote C:

Cost or responsibility: Consolidation
Quote A:
Quote B:
Quote C:

Cost or responsibility: Main freight
Quote A:
Quote B:
Quote C:

Cost or responsibility: Insurance
Quote A:
Quote B:
Quote C:

Cost or responsibility: Import clearance
Quote A:
Quote B:
Quote C:

Cost or responsibility: Duty and tax
Quote A:
Quote B:
Quote C:

Cost or responsibility: Final delivery
Quote A:
Quote B:
Quote C:

Cost or responsibility: Unloading
Quote A:
Quote B:
Quote C:

Cost or responsibility: Risk-transfer point
Quote A:
Quote B:
Quote C:

If a field is blank, ask whether it is included, excluded or not applicable. “All-in” is not analysis.

The purchase-order checklist

  • Rule, exact named place and “Incoterms 2020” are written.
  • Seller and buyer operational contacts are named.
  • Loading and unloading are assigned.
  • Export, import and excise roles are assigned.
  • Main carrier and service level are known.
  • Risk transfer matches insurance.
  • Product and document deadlines are stated.
  • Temperature instructions are attached.
  • Failed pickup and failed delivery charges are addressed.
  • Title, payment and acceptance are handled separately.

Review Winesal's sourcing approach on /advantage, then ask for comparable quotations under the terms genuinely available for the proposed order.

Request the current catalogue and book a call to map EXW, FCA and DAP responsibilities for your destination, order size and logistics setup.

Sources

  1. International Chamber of Commerce, “Incoterms Rules,” https://iccwbo.org/business-solutions/incoterms-rules/. Checked 2026-07-27.