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The Definitive Guide to Incoterms for importing from China

The Definitive Guide to Incoterms for importing from China

Choosing the right Incoterm is one of the most important decisions in an international import.

Understand the differences between EXW, FOB, CIF, FCA and DDP and find out which Incoterm best suits your import operation.
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Our process
Ideal for: First import E-commerce Industry Distribution International purchasing
The problem

Choosing the wrong Incoterm can significantly increase the cost of your import.

An Incoterm defines the responsibilities, costs and risks between buyer and seller. An incorrect choice can result in unexpected expenses, delays or a loss of control over the operation.

Unexpected costs

Lack of control

Customs problems

Financial risk

Unsuitable Incoterm

Difficulty in negotiation

What are Incoterms?

Incoterms are international rules that define who takes on the costs, risks and responsibilities during the transport of goods.

Choosing correctly helps reduce risks and improve control over the operation.

They define responsibilities

They define who organizes the transport

They define who handles customs

They define who bears the costs

Cargobase Benefits

What you gain by choosing the right Incoterm

Importing from China does not have to be complicated

More predictability

Fewer unexpected costs

Better negotiation

Fewer logistics risks

More control

A more efficient operation

Types of service

EXW
Ideal when:
  • you control the entire logistics
  • you have an experienced freight forwarder
Advantages:
  • greater control
  • greater flexibility
Learn more
FOB
Ideal when:
  • you import by sea
  • you want to control the international transport
Advantages:
  • widely used in China
  • a good balance between cost and control
Learn more
Which is the best Incoterm?
It depends on:
  • the company experience
  • the type of cargo
  • the origin
  • the supplier
  • the mode of transport
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Get advice before you decide

Not sure which Incoterm is right for you? Our team analyses your operation for free and recommends the most suitable solution.
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FAQS

Common Questions

EXW means the seller only makes the goods available at its premises. The entire remaining process is the buyer responsibility.
Under FOB, the seller delivers the goods on board the ship at the port of origin. From that moment on, the costs and risks pass to the buyer.
Under CIF, the seller covers the cost of sea freight and insurance up to the port of destination. However, the risk transfers to the buyer once the cargo is loaded on board the ship.
Under DDP, the seller takes on practically all responsibilities, including transport, taxes and customs clearance up to the agreed destination.
It depends on the type of goods, the company experience and the level of control desired over the logistics operation.
For most imports from China, FOB is often the most balanced option, as it lets the buyer control the international transport without taking on responsibilities from the origin.