📦 EXW, FOB, CIF, CFR, DDP Explained – A Clear Guide for China–U.S. Shipping

When shipping goods internationally — especially from China to the U.S., understanding incoterms like EXW, FOB, CIF, CFR, and DDP is crucial. These trade terms define who pays, who takes the risk, and where responsibilities shift between buyer and seller.

At Passionship Logistics, we help our clients choose the best shipping terms based on their budget, logistics capabilities, and delivery preferences. Let’s break down each incoterm clearly:

🚪 EXW (Ex Works) — Minimum Responsibility for Seller

  • Delivery Location: Seller’s factory or warehouse in China

  • Customs: Buyer is responsible for export and import clearance

  • Who Pays What: Buyer bears all costs from pickup to final delivery

  • Risk Transfer: Once goods are handed to buyer or their agent at the factory

  • Ideal For: Buyers with local agents in China or experience with export procedures

  • Key Note: Seller has the least responsibility; buyer handles everything

🔍 Used when buyer has full control of shipping or wants to use their own freight forwarder.

⚓ FOB (Free On Board) — A Popular Standard in Sea Freight

  • Delivery Location: Named loading port in China (e.g., Shenzhen Port)

  • Customs: Export clearance handled by the seller

  • Who Pays What:

    • Seller: Costs up to loading onto vessel

    • Buyer: Freight, insurance, and costs after loading

  • Risk Transfer: Once goods are loaded on board

  • Ideal For: Traditional ocean freight buyers, especially bulk shipments

  • Key Note: Most commonly used term for international container shipping

📌 Buyer must arrange ocean freight and insurance once goods are onboard.

🚢 CIF (Cost, Insurance and Freight) — Seller Arranges Basic Coverage

  • Delivery Location: Destination port in buyer’s country (e.g., Los Angeles)

  • Customs: Export clearance by seller

  • Who Pays What:

    • Seller: Shipping + basic marine insurance

    • Buyer: Port charges, customs clearance, import duties

  • Risk Transfer: When cargo is loaded on the vessel

  • Ideal For: Buyers who want freight and insurance arranged for them

  • Key Note: Seller covers insurance — but usually only minimum coverage

💡 If you want more comprehensive insurance, confirm policy details with your forwarder.

🌊 CFR (Cost and Freight) — Insurance Not Included

  • Delivery Location: Destination port (without insurance)

  • Customs: Export clearance by seller

  • Who Pays What:

    • Seller: Freight to destination port

    • Buyer: Insurance + all import costs

  • Risk Transfer: At point of loading onto vessel

  • Ideal For: Experienced importers managing their own insurance

  • Key Note: Seller pays freight only; buyer covers risk

📝 Always combine with cargo insurance if using CFR.

🚚 DDP (Delivered Duty Paid) — All-Inclusive, Door-to-Door Delivery

  • Delivery Location: Final destination (e.g., buyer’s U.S. warehouse)

  • Customs: Seller handles both export and import customs

  • Who Pays What:

    • Seller: Everything — shipping, customs, duties, delivery

    • Buyer: Nothing extra

  • Risk Transfer: After delivery to the buyer’s door

  • Ideal For: E-commerce sellers, Amazon FBA shipments, or businesses wanting no hassle

  • Key Note: Seller takes maximum responsibility

✅ At Passionship, our DDP shipping from China to the USA is one of the most popular services for Amazon and Shopify sellers.

🧭 Which Term Should You Choose?

Shipping Term Buyer’s Responsibility Seller’s Responsibility Risk Transfer Point
EXW Full control & cost Minimal At seller’s door
FOB After loading on ship Before loading On board vessel
CIF After arrival at port Freight + insurance On board vessel
CFR Freight + insurance Freight only On board vessel
DDP None All-inclusive At final destination

Why Work With Passionship Logistics?

At Passionship, we offer tailored China–USA freight solutions based on your preferred incoterms. Whether you're a first-time importer or a seasoned logistics buyer, we provide:

  • ✅ Clear cost breakdowns

  • ✅ DDP air & sea freight services

  • ✅ Amazon FBA delivery

  • ✅ Real-time tracking & customs support

  • ✅ English-speaking customer service

📞 Ready to ship from China to the USA?
👉 Get a free quote today

Passionship Logistics – Your trusted freight forwarder from China to the U.S.
We make shipping simple, reliable, and transparent.

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