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.
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
| Term | Seller generally handles | Buyer generally handles |
|---|---|---|
| EXW | Makes goods available at the named premises | Pickup, export arrangements, main freight, import and delivery |
| FOB | Export process and delivery on board at named port | Main ocean freight, destination, import and delivery |
| DDP | Transport to named destination and import formalities, subject to legal ability | Receives 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
Get a quote built around the complete route.
Share the cargo, origin, destination and timing. We will review the practical options and identify details still needed for pricing.
Request a freight quote ↗Prefer to write directly? 744145623@qq.com or WhatsApp.