Are you importing goods from China, Europe, or Turkey to Morocco? Before even talking about prices, one question determines who pays for what and who bears which risks: the Incoterm. These three letters, written on your order form and invoice, precisely set out the division of transport, insurance, and customs costs between you and your supplier.
Badly chosen, an Incoterm can blow up your logistics budget, leave you with no control over transportation, or create headaches at customs. Well chosen, it saves you money and gives you peace of mind.
In this guide, Sandra Transport explains to you the Incoterms 2020, their differences, and especially which ones to favor for importing to Morocco safely.
Incoterms 2020: what are we talking about?
The Incoterms (International Commercial Terms) are rules published by the International Chamber of Commerce (ICC). Recognized worldwide, they define three key points of an international sale:
- the transfer of fees: how far the seller pays, and from where the buyer takes over;
- the transfer of risk: when the goods become the buyer's responsibility in case of loss or damage;
- formalities: who takes care of export and import customs clearance.
Warning: an Incoterm doesn't cover the price, the payment method, or the transfer of ownership. These things are dealt with in the sales contract.
What's changed with the 2020 version
Effective January 1, 2020, this version brought several adjustments:
- DAT becomes DPU (Delivered at Place Unloaded): delivery can be made anywhere, not just in a terminal, goods unloaded.
- Enhanced insurance in CIP: the seller now has to take out extended coverage ("all risks" clauses, called ICC A), while CIF still sticks to minimal coverage (ICC C).
- FCA and “on board” bill of lading: the parties can agree that the buyer asks their carrier to issue an “on board” bill of lading to the seller, useful for payments through a letter of credit.
- Transport by your own means: in FCA, DAP, DPU, and DDP, the seller or buyer can transport the goods with their own vehicles.
The 2010 Incoterms can still be used if the contract specifies it, but it's recommended to always mention the version: for example, 'FOB Shanghai Incoterms® 2020'.
The 11 Incoterms 2020 at a glance
The Incoterms 2020 are divided into two groups: seven rules that can be used for all modes of transport, and four reserved for sea and inland waterway transport.
Multimodal Incoterms (all modes of transport)
| Incoterm | Meaning | The seller takes care of... |
|---|---|---|
| EXW | Ex Works (at the factory) | Only available on-site |
| FCA | Free Carrier (carried by the transporter) | Delivery to the carrier designated by the buyer, including export customs clearance |
| CPT | Carriage Paid To (freight paid to) | Main transport to the agreed location, without insurance |
| CIP | Carriage and Insurance Paid To | The main transport and extended insurance |
| DAP | Delivered at Place (rendu au lieu de destination) | Delivery to the agreed place, not unloaded, excluding import customs clearance |
| DPU | Delivered at Place Unloaded | Delivery and unloading at the agreed place |
| DDP | Delivered Duty Paid (rendu droits acquittés) | Everything, including import clearance, duties, and VAT |
Incoterms maritimes
| Incoterm | Meaning | The seller takes care of... |
|---|---|---|
| FAS | Free Alongside Ship (franco le long du navire) | Delivery along the ship at the port of departure |
| FOB | Free On Board (franco à bord) | Loading onto the ship at the departure port |
| CFR | Cost and Freight (coût et fret) | Sea freight to the port of arrival, without insurance |
| CIF | Cost, Insurance and Freight | Maritime freight and minimal insurance up to the port of arrival |
Key point to remember: in CPT, CIP, CFR, and CIF, the seller pays for the main transport, but the risk transfers to the buyer from the start. So if the goods get damaged at sea, it's the buyer who bears the risk, even if the seller has paid the freight.
Which Incoterm should I choose to import to Morocco?
There’s no one-size-fits-all answer: the right choice depends on your experience, the import volume, and your relationship with the supplier. Here’s our take on the most common options for a Moroccan importer.
FOB and FCA: the best balance for the importer
In FOB (maritime transport) or FCA (all modes, containers in particular), the supplier delivers the goods cleared for export, and it's up to you to choose the freight forwarder and the shipping company.
- Advantages: you control the freight cost, the choice of port, and the schedule; you avoid hidden fees on arrival; your freight forwarder in Morocco manages the whole process.
- Disadvantages: you have to arrange international transport, hence the usefulness of a freight forwarder.
For containers, the ICC usually recommends FCA over FOB, because the container is generally delivered to the terminal before being loaded on board. This is the choice we most often advise our importing clients.
CFR and CIF: common practices, but watch out for costs on arrival
In CFR or CIF, the supplier arranges and pays for the freight to the Moroccan port. It’s simple for a first import, but:
- you don't control the company or the forwarder at the destination;
- Some suppliers offer cheap shipping, offset by high unloading and delivery fees charged upon arrival in Morocco;
- In CIF, insurance is just minimal coverage, and Moroccan regulations set out specific rules for insuring imported goods (see next section).
EXW: to avoid except in special cases
In EXW, you handle everything from the supplier's factory, including export customs in their country, which is often tricky for a foreign buyer. Generally, FCA is preferred, as it leaves the export process to the seller.
DAP, DPU, and DDP: comfortable, but rarely suitable
With these Incoterms, the supplier delivers up to Morocco. Under DDP, they would even have to clear customs and pay Moroccan duties and VAT, which means they need to be able to act as an importer in Morocco—something that's rarely the case for a foreign supplier. DAP can work for regular shipments with a well-organized supplier, with the importer taking care of import customs clearance themselves.
Summary table
| Situation | Incoterm conseillé |
|---|---|
| Regular container imports, wanting to keep costs under control | FCA or FOB |
| First import, small volume, reliable supplier | CFR or CPT, with a quote for the arrival fees |
| Very organized supplier, regular deliveries | DAP |
| Supplier with no export capacity | FCA rather than EXW |
| Import requiring customs clearance by the seller | DDP, to be checked on a case-by-case basis |
The specifics of importing to Morocco
The Incoterm isn't just a business matter: in Morocco, it has direct consequences on customs clearance and paperwork.
The customs value includes freight and insurance
Morocco applies the rules of the WTO Agreement on customs valuation. Import duties and VAT are calculated on a value that includes the price of the goods and the transport and insurance costs up to the Moroccan border. In practice:
- If you buy on FOB or FCA, you'll need to provide proof of the freight and insurance costs (invoices from your freight forwarder and insurer) to establish the customs value;
- If you buy on CFR or CIF, these amounts are already included in the supplier's price.
Insurance for imported goods
Moroccan insurance regulations generally require that imported goods be insured with a company approved in Morocco. This is another reason to favor Incoterms where the buyer takes out the insurance themselves (FCA, FOB, CFR, CPT) rather than CIF or CIP. Check your situation with your insurer or your freight forwarder.
Bank account registration and the consistency of documents
To pay a foreign supplier, the import operation must be handled through a Moroccan bank. The Incoterm, amount, and currency must be identical on the pro forma invoice, the import document, the final invoice, and the customs declaration. Any mismatch could block customs clearance or payment.
Free trade agreements
Morocco has signed trade agreements with the European Union, Turkey, the United States, EFTA, and several Arab countries, among others. Whatever the Incoterm, make sure to ask your supplier for the certificate of origin (EUR.1, for example) to benefit from reduced or zero duties.
Common mistakes with Incoterms
- Forget the exact location: “FOB” alone isn’t enough. Write “FOB Ningbo Incoterms® 2020” or “FCA seller’s warehouse, Istanbul”.
- Do not specify the version: without mentioning it, a dispute over interpretation can arise.
- Mixing up costs and risks: in CIF, the supplier pays for the freight, but the risk at sea is already on you.
- Using FOB or CIF for containers without considering the consequences: FCA or CIP are often more suitable.
- Choosing CFR or CIF without a quote for arrival fees: you find unexpected unloading and delivery charges at the port.
- Accept DDP without checking if the supplier can actually clear customs and pay taxes in Morocco.
- Do not align the Incoterm across all documents: the invoice, import license, and declaration must match.
Most of these mistakes can be avoided by having your freight forwarder approve the Incoterm before confirming the order.
Sandra Transport helps you with your imports
Choosing the right Incoterm is already a good start. But you still need to organize the transport and customs clearance that follow. Sandra Transport steps in at every stage:
- Pre-purchase advice: analysis of your supplier's offer and recommendation of the most suitable Incoterm.
- Organization of international freight in FCA, FOB, or EXW, from Europe, Asia, or Turkey.
- Full quote of arrival costs if you buy CFR or CIF, to avoid any unpleasant surprises.
- Import customs clearance in Morocco and checking the consistency of the documents.
- Livraison jusqu’à votre entrepôt, partout au Maroc.
You buy at the best price, you control your supply chain, and you reduce the risk of customs hold-ups.
FAQ: Incoterms 2020 and importing to Morocco
What's the best Incoterm for importing from China to Morocco?
For containers, FCA or FOB at the Chinese port are usually the most interesting: you choose your freight forwarder, control the shipping costs, and avoid hidden fees on arrival.
What's the difference between FOB and CIF?
Under FOB, the buyer pays for sea freight and insurance from the time the goods are loaded on board. Under CIF, the seller pays for freight and minimum insurance up to the destination port. In both cases, the risk transfers to the buyer once the goods are loaded on board.
Can we still use the 2010 Incoterms?
Yes, if the contract explicitly says so. But it's recommended to use the 2020 version and always mention it.
Is DDP possible for an import into Morocco?
It's possible in theory, but rarely practical: the foreign supplier has to be able to clear customs in Morocco and pay duties and VAT. DAP is often preferred, with the importer handling the customs clearance.
Does the Incoterm affect customs duties in Morocco?
He doesn't change the duty rates, but he decides which fees are included in the billed price. In any case, the customs value includes freight and insurance up to the Moroccan border.
Who pays for the unloading at the Moroccan port?
In general, the buyer does it, except in DPU where the seller delivers the goods unloaded. In CFR and CIF, check what the freight paid by the supplier covers.
Where should I indicate the Incoterm?
On the sales contract, the pro forma invoice, the commercial invoice, and the domiciliation documents, with the exact place and version.
Conclusion: pick the right Incoterm to import with peace of mind
The Incoterms 2020 may seem simple, but they are crucial for the profitability and safety of your imports. When importing to Morocco, FCA and FOB give the best cost control; CFR and CIF remain convenient as long as you anticipate arrival fees; EXW and DDP should be reserved for special cases. In any case, make sure your Incoterm matches your documents and have it approved before placing an order.
Are you preparing an import? Contact Sandra Transport: we help you choose the right Incoterm and arrange your transport to Morocco.
