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Incoterms

EXW vs FOB vs DDP When Shipping from China

EXW, FOB and DDP are commercial delivery terms, not shipping products. They define where the seller’s cost and risk obligations change, but the named place and the sales contract determine how the term works in practice.

11 November 20263 min readBy Xinshun Logistics

Read the term together with the named place

“FOB China” is incomplete. A useful agreement states the rule, named port or place and the applicable Incoterms edition, for example FOB Yantian, Incoterms 2020. The same three letters can create a different practical handoff when the named point changes.

What changes under EXW, FOB and DDP

TermSeller generally handlesBuyer generally handles
EXWMakes goods available at the named premisesPickup, export arrangements, main freight, import and delivery
FOBExport process and delivery on board at named portMain ocean freight, destination, import and delivery
DDPTransport to named destination and import formalities, subject to legal abilityReceives delivery; unloading may remain separate

Why EXW needs careful origin planning

Under an EXW purchase, confirm whether the factory can provide the documents and cooperation needed for export. Ask who loads the collection vehicle, who appears on export records and how taxes or export documentation are handled. In practice, FCA may sometimes create a cleaner export handoff, but the parties must agree the commercial term.

Why DDP is not a magic all-inclusive label

DDP can be attractive because the seller quotes delivery to the destination, but the importer-of-record structure, product compliance, duties, taxes and local registrations must be legally workable. Ask who will be named as importer, whether duties and taxes are truly included, and what happens if customs requests additional evidence.

Questions to put in writing

  • What is the exact named place or port?
  • Who pays origin pickup, export clearance and loading?
  • Who books main transport and cargo insurance?
  • Who is importer of record and who pays duties and taxes?
  • Does final delivery include appointments, liftgate or unloading?

Frequently asked questions

Is FOB suitable for air freight?

FOB is intended for sea or inland-waterway transport. FCA is commonly considered for containerised or air shipments, depending on the transaction.

Does DDP always include unloading?

Not automatically. The delivery point and unloading responsibility should be stated clearly in the agreement and quote.

Can a freight forwarder choose the Incoterm for me?

A forwarder can explain logistics implications, but the buyer and seller must agree the commercial term in their sales contract.

Official references

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