The four you’ll hear most
| Term | Seller arranges | Risk passes to buyer |
|---|---|---|
| EXW | Makes goods available at its premises | At the seller’s premises |
| FOB | Export clearance and loading on the vessel at the named port | Once goods are on board at origin |
| CIF | FOB duties + sea freight and minimum insurance to destination port | Once goods are on board at origin |
| DDP | Everything to your door, including import clearance and duties | At the named destination |
Under CIF the seller pays freight to your port, but the risk is already yours once goods are loaded at origin. Check what the included insurance actually covers.
EXW and FOB: more control, more work
With EXW you (or your forwarder) handle everything from the factory door, including export formalities — which can be difficult for a foreign buyer. FOB is more common: the seller clears export and loads the goods, and your forwarder takes over from there.
These terms suit buyers who already work with a freight forwarder and customs broker and want to control shipping cost and routing.
DDP: simplest for the buyer
With DDP the seller delivers to your address with import duties and taxes paid. You get one all-in price and no customs paperwork, which is why DDP is popular for first orders, samples and small shipments.
- You have less visibility of the cost breakdown, so ask for freight and duty to be itemised.
- In some countries the importer of record has obligations — confirm who that is.
- Duty rates depend on product classification and origin; they are not the factory’s choice.
A note on containers and air freight
FOB and CIF are designed for sea and inland waterway transport. For containerised or air shipments, FCA and CIP are the technically correct equivalents, because risk passes when goods are handed to the carrier rather than when they are loaded on board. Many suppliers still quote FOB out of habit — just make sure everyone understands where risk transfers.
Which should you choose?
- First order, no forwarder: DDP.
- Have a forwarder and want control of freight: FOB (or FCA).
- Want the seller to book the vessel but handle import yourself: CIF (or CIP).
- Collecting from the factory with your own logistics partner: EXW — but consider FCA instead, so the seller handles export clearance.
We quote EXW, FOB, CIF and DDP. (Placeholder — confirm your actual shipping options.)
Not sure which term to use?
Tell us your destination and quantities — we’ll quote the options side by side.
Compare shipping options
