📚 China import course

Incoterms are international trade terms that define who is responsible for shipping, insurance and customs — you or the supplier.

The 4 most important terms for a beginner importer:

1. EXW (Ex Works)
The supplier only makes the goods available at the factory. You bear everything from the moment they leave the factory.
- Suited to: those with a buying agent in China
- Drawback: you carry all the risks of inland transport in China

2. FOB (Free On Board)
The supplier delivers the goods to the Chinese port and loads them on the ship. You take over from the moment of loading.
- Suited to: most professional importers
- The most common term in international trade

3. CIF (Cost, Insurance and Freight)
The supplier pays for the goods + insurance + freight to the port of arrival.
- Suited to: beginners who do not want to deal with shipping
- Drawback: the supplier chooses the carrier, which may not be the cheapest

4. DDP (Delivered Duty Paid)
The supplier bears everything until the goods are delivered to your warehouse. You pay no extra charges.
- Suited to: complete beginners or small orders
- Drawback: the most expensive, and the supplier may add an extra margin

Recommendation: start with CIF or DDP while you learn, then move to FOB as you gain experience.