Quick answer
Under EXW the buyer takes over at the factory and handles everything, including export clearance; under FOB the seller clears export and loads the goods on board at the named port, where risk passes to the buyer; under DDP the seller delivers to your address with import duties and taxes paid. FOB is a common middle ground for apparel shipped by sea when you have a forwarder; DDP is simplest to receive but shows you the least of the freight and import costs. Always write the Incoterms 2020 rule and the named place on the quotation.
The question behind this guide
Should I buy clothing FOB, EXW or DDP?
Search suggestions included “fob vs ddp”, “fob vs ddp shipping”, “fob vs ddp vs exw” and “fob vs ddp vs cif”. First-time importers want to know which costs a price includes and who deals with customs.
Questions were chosen from Google search suggestions checked on 23 September 2026. SenLin’s minimums, sample periods, production periods, sizes and fabric ranges come from its owner-confirmed order terms; technical and regulatory points link to the source they rely on. This is buyer guidance, not legal, customs or testing advice for a specific order.
Key takeaways
- An Incoterms rule allocates tasks, costs and risk; it is not a payment term.
- Always name the place, not just the three letters.
- DDP moves import duties and taxes to the seller.
- Compare quotations only on the same rule and named place.
The three rules side by side
| Question | EXW | FOB | DDP |
|---|---|---|---|
| Where the seller delivers | At its premises, not loaded | On board the vessel at the named port | At your named destination, ready for unloading |
| Export clearance | Buyer | Seller | Seller |
| Main freight | Buyer | Buyer | Seller |
| Import duties and taxes | Buyer | Buyer | Seller |
| Where risk passes | When the goods are placed at the buyer’s disposal | When the goods are on board | At the destination |
| Suits | Buyers with a strong forwarder in China | Sea shipments with your own forwarder | Buyers who want one delivered price |
Why FOB is common for apparel
FOB splits the work at a clear point: the seller handles export packing, export clearance and loading at the port, and your forwarder takes over for the sea leg, import clearance and delivery. It keeps freight and import costs visible to you and lets you consolidate shipments from several suppliers.
FOB is intended for sea and inland-waterway transport. For air freight, or for containers handed over at a terminal before loading, the ICC recommends FCA instead.
When DDP makes sense, and its trade-offs
DDP is the simplest rule for the buyer receiving the goods: one price covers delivery with duties and taxes paid. The trade-off is visibility and control. Freight, duty and brokerage sit inside the seller’s price, and the seller must be able to handle import clearance in your country, directly or through an agent. Check how customs queries, duty adjustments and returns are handled before choosing DDP.
EXW: control, with more work
EXW gives the lowest ex-factory price and full control, but it also leaves export formalities in the seller’s country to the buyer, which a foreign buyer usually cannot complete directly. In practice, buyers on EXW rely on a forwarder in China to collect, clear and ship. Where the buyer cannot carry out export clearance, FCA is often the better fit.
Duties depend on the HS code
Import duty is set by the tariff classification and the country of origin. Knitted hoodies and sweatshirts fall under HS heading 6110—6110.20 for cotton and 6110.30 for man-made fibres such as polyester. Knitted trousers and shorts fall under 6103 for men and 6104 for women, tracksuits under 6112 and T-shirts under 6109. The importer or customs broker confirms the full national code and rate for each style before a landed cost is calculated.
What to write on the quotation
SenLin supports sea freight, air freight and express courier, and quotes freight for the actual carton count, weight, destination and agreed trade term. Production time—15 working days for standard styles or 20–25 for custom orders—is separate from transit, customs clearance, duties and destination taxes unless the quotation expressly includes them.
- The Incoterms 2020 rule followed by the named place or port.
- Who provides export packing, carton marks and shipping documents.
- Whether insurance is included, and by whom.
- The shipping mode: sea, air or express courier.
- Who pays and handles destination charges and final delivery.
Continue your buyer research
Connect this decision to the relevant product, factory process and frequently asked questions before requesting a quotation.
Frequently asked questions
Does an FOB price include shipping?
Only to the ship. FOB covers the seller’s costs until the goods are loaded on board at the named port; ocean freight, insurance, import duties and delivery are the buyer’s.
Who pays import duty under DDP?
The seller. Under DDP the seller delivers with import duties and taxes paid, so confirm that the price includes them and who acts as the importer.
Are Incoterms payment terms?
No. Incoterms rules allocate delivery tasks, costs and risk. Deposits, balances and payment methods are agreed separately in the quotation or contract.
Sources and evidence notes
- Official rules publisherICC: Incoterms 2020
- Official rules publisherICC: Incoterms rules and responsibilities
- Official US tariff scheduleUSITC: Harmonized Tariff Schedule
