China Shipping Incoterms Explained: EXW, FOB, CIF & DDP
Understanding who pays for what, where legal risk transfers from the factory to the buyer, and how to pick the most profitable trade term for your imports.
EXW (Ex Works)
Maximum Buyer RiskThe supplier only manufactures the goods and leaves them at their factory. The buyer pays for inland China trucking, China export customs clearance, international freight, and destination taxes.
FOB (Free On Board)
Industry Standard for FCLThe supplier pays for local trucking in China, port loading fees, and export export declaration. The buyer’s freight forwarder takes over once cargo is loaded on board the vessel.
CIF (Cost, Insurance & Freight)
Warning: Hidden Destination FeesThe supplier covers freight to your destination port. However, you are responsible for destination port handling fees (DTHC), customs clearance, and local trucking, which often carry high hidden markups.
DDP (Delivered Duty Paid)
All-Inclusive Doorstep DeliveryThe freight forwarder handles everything: factory pickup, export clearance, ocean/air shipping, destination customs clearance, and prepaid duties/VAT straight to your door or Amazon FBA center.
| Logistics Stage / Cost Component | EXW | FOB | CIF | DDP (CINA Logistics) |
|---|---|---|---|---|
| Factory Packaging & Production | Supplier | Supplier | Supplier | Supplier |
| China Inland Trucking & Export Customs | Buyer / Forwarder | Supplier | Supplier | Forwarder (Handled) |
| International Ocean / Air Freight | Buyer / Forwarder | Buyer / Forwarder | Supplier | Forwarder (Handled) |
| Destination Port Fees & Customs Clearance | Buyer | Buyer | Buyer | Forwarder (Handled) |
| Import Tariffs & Destination VAT | Buyer | Buyer | Buyer | Forwarder (Prepaid & Cleared) |
| Final Doorstep / Warehouse Trucking | Buyer | Buyer | Buyer | Forwarder (Included) |
🎯 Which Incoterm Should You Request from Your China Factory?
• If you want zero hassle: Request EXW or FOB terms from your Chinese supplier, and book DDP with CINA Logistics. We handle everything from the factory floor straight to your warehouse door or Amazon fulfillment center with zero surprise invoices.
• If you buy in full 40HQ containers: Buy on FOB terms so your factory covers all Chinese domestic port charges, and let your forwarder manage the ocean booking and import clearance.