Shipping terms

FOB vs DDP vs EXW: who pays for what, from our factory to your door

Every quote names a shipping term, and that term decides where our job ends and yours begins. Pick a term below and the route splits between us and you.

We quote all five terms on this page. Pick the one that matches how you want to ship.

Choose a shipping term

We arrange and pay
You arrange and pay
Risk passes to you

Loading at our factoryUs
China export customsUs
Loading onto the shipUs
Sea or air freightUs
Arrival at your portUs
Import customs and dutyUs
Delivery to your doorUsOn delivery to your address

In the quoted price · DDP

Factory
Export
On board
Freight
Arrival
Import
Your door

You arrange on top

Nothing: unload and sell

Which one should you pick

A quick answer for first-time importers

First order, no freight forwarder

DDP

One price to your door. You do not need to learn customs before your first delivery.

You already work with a forwarder

FOB

Your forwarder books the freight and clears import customs, and you see every cost separately.

Your forwarder consolidates in China

EXW

They collect from several factories and handle the export paperwork themselves.

Side by side

The five terms in one table

The same route, read across. DDP is the most we handle, EXW the least.

Term	Our job ends when	Main freight	Import duty and clearance	Risk passes to you
DDPDelivered Duty Paid	Delivered to your address with duty paid	We pay	We pay	On delivery to your address
DAPDelivered at Place	Delivered to your address, duty unpaid	We pay	You pay	On arrival at your address
CIFCost, Insurance and Freight	Freight and insurance paid to your port	We pay	You pay	Once loaded on board in China
FOBFree On Board	Goods loaded on board at a Chinese port	You pay	You pay	Once loaded on board in China
EXWEx Works	Goods packed and ready at our factory	You pay	You pay	At our factory gate

DDP

We arrange everything: freight, export and import customs, duty and import taxes, and delivery to your address. You pay one invoice and nothing at the border.

Best for: First orders, small brands without a forwarder, and anyone who wants one landed price per piece.
Watch out: A DDP price already contains freight and duty, so it looks higher than a FOB price. Compare it with your full FOB landed cost, not with the FOB unit price.

DAP

The seller ships all the way to your address, but the goods stop at import customs until you clear them and pay the duty and import taxes.

Best for: Buyers who have a customs broker or an import account and want door delivery without the seller paying duty.
Watch out: The carrier holds the shipment until the duty bill is paid, so plan for that payment before the goods land. Choose DDP if you want the duty included in our price.

CIF

The seller pays freight and basic insurance to your port, but the risk passes to you when the goods are loaded in China. Import customs, duty and delivery are still yours.

Best for: Sea shipments where the buyer wants the seller to book the vessel but will clear and collect at the port.
Watch out: Paid freight is not the same as carried risk: if cartons are damaged at sea, you claim on the insurance policy, not from the seller.

FOB

We truck the goods to a Chinese port, clear export customs and load them on board. Once the cartons are on the ship, freight, insurance, import duty and delivery are yours.

Best for: Brands with their own freight forwarder who want to see each shipping cost on its own line.
Watch out: Our price stops at the port. Add freight, insurance, customs broker, duty and delivery before you compare it with a DDP price.

EXW

You collect the cartons at our factory gate. Every step after that is yours: the truck, China export customs, freight, import duty and delivery.

Best for: Buyers whose forwarder has an office in China and already collects from several suppliers.
Watch out: The lowest price on paper, but your forwarder charges for every step we would otherwise do, including the export declaration.

Simplified from the Incoterms® 2020 rules published by the International Chamber of Commerce. Incoterms® is a registered trademark of the ICC. Read the full rules before signing a contract. ICC Incoterms® rules

FAQ

Questions buyers ask about shipping terms

Is DDP more expensive than FOB?

A DDP price is higher because it already contains the freight, customs clearance, duty and delivery that a FOB buyer pays to other companies. The fair comparison is the DDP price against your full FOB landed cost: the FOB price plus freight, insurance, broker fees, duty and delivery.

Who pays shipping under DDP?

The seller. Under DDP the seller arranges and pays freight, export and import clearance, duty and import taxes, and delivery to the named address. The buyer only unloads the goods.

What is the difference between DDP and DAP?

Both deliver to your address. Under DAP you clear import customs and pay the duty and import taxes yourself before the carrier releases the goods; under DDP the seller has already paid them.

What does EXW mean on Alibaba?

An EXW price covers the goods at the factory gate and nothing else. You or your forwarder arrange the pickup, China export customs, freight, import duty and delivery, so an EXW price cannot be compared with a FOB or DDP price until those costs are added.

Can FOB be used for air freight?

Strictly, no. Under Incoterms® 2020, FOB is a sea and inland waterway rule, and the matching rule for air is FCA (Free Carrier). Many suppliers still say FOB for air shipments, so check that the quote names the airport or port where our job ends.

Which shipping terms can you quote?

All five on this page: DDP, DAP, CIF, FOB and EXW. Send the destination city and the term you want with your inquiry. If you are not sure, tell us whether you have a freight forwarder and we will suggest one.

Want one price to your door?

Send the style, quantity and destination city. We will quote FOB and DDP side by side so you can compare.

Get a DDP quote