Guide

Shipping & Incoterms Guide

Shipping terms define who handles transport, customs, insurance and risk at each step. Misunderstanding Incoterms can make a cheap quote expensive later.

Compare landed cost, not only unit price

Include inland transport, export handling, ocean or air freight, insurance, import duty, tax, customs clearance and destination delivery.

Choose terms based on experience

FOB is often clearer for importers with a freight forwarder. EXW can create extra China-side handling. DDP may be convenient but needs careful provider review.

Confirm customs responsibilities

First-time buyers should understand who acts as importer of record and who pays duty, tax and local charges.

Buyer mistakes to avoid

  • Choosing the lowest quote before comparing MOQ, lead time, payment terms and inspection support.
  • Paying a deposit before the supplier legal name, bank account and PI details are confirmed.
  • Using vague product descriptions instead of measurable specifications, packaging requirements and defect limits.
  • Leaving inspection, shipping terms or after-sales support to be discussed after production is finished.

Practical checklist

  • Confirm the supplier legal name and payment account before deposit.
  • Write product, packaging, inspection and shipping requirements clearly.
  • Keep samples, PI, messages and inspection evidence in one order file.
  • Use independent support when quality, logistics or communication risk is high.

FAQ

Is DDP always easiest?

It can be convenient, but buyers should check what is included, who handles import compliance and whether duty or tax is clearly covered.

Is FOB better than EXW?

FOB is often easier for overseas buyers because the supplier handles China export delivery to the port, but the best choice depends on the shipment.

Do Incoterms include product quality responsibility?

No. Incoterms cover delivery responsibilities and risk transfer, not product defects or inspection standards.

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