What Are Incoterms?
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce that define the responsibilities of sellers and buyers in international transactions. They specify who arranges transportation, who pays for what, and when risk transfers from seller to buyer. Understanding Incoterms is critical when importing from China.
Most Common Incoterms for China Imports
EXW (Ex Works)
Seller’s responsibility: Makes goods available at their factory or warehouse. Buyer’s responsibility: Everything — factory pickup, export customs, freight, import customs, and final delivery. EXW places maximum responsibility on the buyer.
FOB (Free on Board)
Seller’s responsibility: Delivers goods to the port, loads onto the vessel, handles export customs. Buyer’s responsibility: Ocean/air freight, insurance, import customs, destination delivery. FOB is the most common Incoterm for Chinese exports.
CIF (Cost, Insurance & Freight)
Seller’s responsibility: All costs including freight and insurance to the destination port. Buyer’s responsibility: Import customs clearance, duties, taxes, inland delivery from port.
DDP (Delivered Duty Paid)
Seller’s responsibility: Everything — export/import clearance, freight, insurance, duties, taxes, delivery to buyer’s door. Buyer’s responsibility: Simply receives the goods. DDP is the ultimate hassle-free option for importers.
Which Incoterm Should You Choose?
For experienced importers with established logistics: FOB offers competitive pricing and control over the shipping process. For first-time importers or those wanting simplicity: DDP removes all complexity — one price, one point of contact, doorstep delivery. For small samples: EXW can work if you have a freight forwarder who can arrange pickup.
Yueyang Freight — Your Incoterm Partner
Whether you prefer FOB, CIF, or all-inclusive DDP shipping, Yueyang Freight has you covered. Our team helps you choose the right terms for your specific needs. Contact us for a free consultation and quote.