Linfon′
EXW
Ex Works
You pay: Almost everything
Seller handles: Makes goods available at their factory
Risk transfers: At the factory door
Fits when: You have your own trucker + export agent in China. Rarely sensible for first-timers.
FOB
Free On Board
You pay: Ocean freight, insurance, destination customs
Seller handles: Delivers + export clearance, loads the vessel
Risk transfers: Once goods pass the ship's rail
Fits when: You have a freight forwarder at destination and want control of the main leg.
CIF
Cost, Insurance & Freight
You pay: Destination customs + delivery
Seller handles: Freight + minimum insurance to your port
Risk transfers: When goods load at origin — but seller books the freight
Fits when: Looks simple, but the seller picks the carrier and the insurance is minimal. We'd rather quote you all-in.
DAP
Delivered At Place
You pay: Import duties + taxes + customs
Seller handles: Everything else, to your address
Risk transfers: At your address, before unloading
Fits when: You have an importer setup and want to control duty payments yourself.
DDP
Delivered Duty Paid
Our pick
You pay: Nothing — one price, one partner
Seller handles: Everything: pickup, freight, customs, duties, delivery
Risk transfers: Only after you sign at the door
Fits when: First-time importers, and anyone without a customs broker. Our recommendation for 90% of buyers.

The honest summary

Incoterms aren't about finding the cheapest code — they're about deciding who eats the risk of the unknowns. If you know customs, FOB gives you control. If you don't, DDP buys you peace of mind at a fair price. See exactly what our DDP includes →

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Questions buyers ask

+Which Incoterm should a first-time importer use?

DDP, in almost every case. You pay one all-in price, the seller's side handles customs and duties, and risk only transfers when you sign at your door. No importer setup, no broker, no surprise invoices at destination.

+Isn't FOB cheaper?

FOB looks cheaper because destination fees arrive on a separate invoice — after the ship has sailed. LCL shipments under FOB routinely collect $60+/CBM in destination charges that weren't in the headline rate. Compare all-in quotes, not headline rates.

+Why do suppliers love quoting EXW or CIF?

EXW makes your problem everything after the factory gate. CIF lets them book freight with a margin and pass you a minimum-insurance shipment. Both shift work and markup onto you.

+What does DDP from Linfon include?

Pickup, export customs, international freight, destination clearance, duties and taxes, and final delivery — one written price. If we missed a fee, it's our cost, not yours.

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