FOB vs EXW vs DDP: Shipping Terms from China Explained for Importers

FOB, EXW and DDP are Incoterms, standard rules defining where the seller's responsibility ends and yours begins. In short: EXW gives you the most control and the most work, DDP gives you the least work and the least control, and FOB sits in the middle and is the most common choice for importing from China.

The three terms at a glance

• EXW, Seller handles: Goods ready at their factory door · You handle: Everything else, export, freight, import, delivery · Best for: Experienced importers with an agent
• FOB, Seller handles: Export clearance + delivery onto the ship · You handle: Sea freight, import duties, final delivery · Best for: Most importers, balanced
• DDP, Seller handles: Everything, to your door · You handle: Almost nothing, just receive · Best for: Beginners / small orders

EXW, Ex Works

The seller just makes goods available at their premises; you arrange pickup, export paperwork, freight and import. Full control over cost and routing, but export clearance falls on you, awkward without a China-based agent.

FOB, Free On Board

The seller delivers the goods, cleared for export, onto the vessel at a Chinese port. From there freight and import are yours. Popular because the split is clean: the supplier handles the China side, you control international shipping and can shop freight rates.

DDP, Delivered Duty Paid

The seller handles everything, including import duties, to your address. Simplest for you, but you're trusting their logistics and paying a bundled price, confirm duty/tax handling in writing.

Which should you choose?

• First order or small volume? DDP keeps it simple while you learn.
• Want transparency and control? FOB is the standard, balanced choice.
• Have a trusted agent and want lowest landed cost? EXW can win, with more work.

Frequently asked questions

Who clears customs under FOB?

The seller clears the goods for export in China; you (or your forwarder) handle import clearance in your country.

What is "landed cost"?

The total cost to get a product to your door, price plus freight, insurance, duties and fees. Always compare Incoterms on landed cost, not unit price.

Not sure which term protects you? Hire a China-based sourcing agent or interpreter on Tohify to negotiate terms and coordinate freight on your behalf.