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Three letters decide who books the ship, who clears customs and who gets the surprise duty bill. For 500–3,000 piece orders, the right choice usually isn't the one that looks cheaper on the quote.
EXW means you collect the goods at the factory gate and handle everything from there, including Chinese export clearance. FOB means the factory's responsibility ends when goods are loaded at a Chinese port — freight, customs and import duties are then yours. DDP means the factory delivers to your door with freight, clearance and duties already included in one price. For first-time importers and orders of 500–3,000 pieces, DDP usually wins: forwarder minimums and clearance fees hit small shipments proportionally hard. Established importers with their own freight setup usually run FOB.
| DDP (Delivered Duty Paid) | FOB (Free On Board) | EXW (Ex Works) | |
|---|---|---|---|
| Factory handles | Production → freight → export & import customs → duties → delivery to your door | Production → export clearance → loading at Chinese port | Production only — goods ready at our door |
| You handle | Receiving the boxes | Ocean/air freight, insurance, import clearance, duty payment, inland delivery | Everything — pickup in China, export clearance, freight, import, duties, delivery |
| Invoices | One | Factory + forwarder + customs broker | Factory + your China-side agent + forwarder + broker |
| Surprise costs | None — duties priced upfront | Possible: clearance fees, storage/demurrage, duty at arrival | Highest exposure — every leg is yours to manage |
| Best for | First orders, no import setup, 500–3,000 pcs | Experienced importers, container consolidation, own freight rates | Buyers whose China-side forwarder consolidates from multiple factories |
Everything from our floor to your door is one price and one responsible party, declared properly through customs. Your job is opening the boxes.
If you consolidate containers or your freight rates beat ours, FOB is cheaper — and we'll say so. Ask for both numbers; comparing them takes us minutes.
If your China-side agent consolidates goods from several factories and handles export clearance, EXW gives you the lowest factory price and full logistics control. Common with buyers running regular multi-supplier shipments.
We quote DDP and FOB side by side on request. The gap tells you exactly what the logistics convenience costs for your specific lane and volume.
Timing matters as much as terms — see lead-time planning for the full clock, and price breakdown for what's inside the bag price itself.
FOB ends at the Chinese port — freight, customs and duties are yours. DDP includes everything to your door in one price.
The invoice is higher because it includes what FOB leaves out. For small/mid orders, total cost is usually similar or better than self-arranging.
When you have a forwarder, consolidate containers, or your freight rates beat ours — typical for established importers.
Ex Works — goods handed over at the factory gate. You (usually via a China-side forwarder) handle pickup, export clearance, freight, import and duties. Lowest factory price, most logistics responsibility.
We do — calculated and included upfront, properly declared. No surprise bills at delivery.
Style, quantity, destination: we return DDP and FOB side by side so the choice is arithmetic, not faith.
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