{"id":3524,"date":"2026-05-23T00:03:57","date_gmt":"2026-05-23T00:03:57","guid":{"rendered":"https:\/\/goodcantrading.com\/fob-vs-exw-vs-ddp-incoterms-china\/"},"modified":"2026-05-23T00:05:07","modified_gmt":"2026-05-23T00:05:07","slug":"fob-vs-exw-vs-ddp-incoterms-china","status":"publish","type":"post","link":"https:\/\/goodcantrading.com\/ar\/fob-vs-exw-vs-ddp-incoterms-china\/","title":{"rendered":"FOB vs EXW vs DDP Incoterms China: 2026 Buyer&#8217;s Guide"},"content":{"rendered":"<div style=\"background:#f8fafc;border-left:4px solid #1a73e8;padding:24px 28px;margin:0 0 32px;border-radius:8px\">\n<p style=\"margin:0 0 16px;font-weight:700;font-size:17px\">\ud83d\udccb Table of Contents<\/p>\n<ul style=\"margin:0;padding-left:24px;line-height:2;list-style:disc\">\n<li><a href=\"#executive-summary\" style=\"color:#1a73e8;text-decoration:none\">Executive Summary<\/a><\/li>\n<li><a href=\"#what-fob-exw-ddp-mean\" style=\"color:#1a73e8;text-decoration:none\">What FOB, EXW, and DDP Actually Mean<\/a><\/li>\n<li><a href=\"#cost-comparison-breakdown\" style=\"color:#1a73e8;text-decoration:none\">Cost Comparison Breakdown<\/a><\/li>\n<li><a href=\"#risk-transfer-points\" style=\"color:#1a73e8;text-decoration:none\">Risk Transfer Points and Responsibilities<\/a><\/li>\n<li><a href=\"#which-incoterm-by-shipment-type\" style=\"color:#1a73e8;text-decoration:none\">Which Incoterm by Shipment Type<\/a><\/li>\n<li><a href=\"#country-specific-landed-cost\" style=\"color:#1a73e8;text-decoration:none\">Country-Specific Landed Cost Implications<\/a><\/li>\n<li><a href=\"#supplier-red-flags\" style=\"color:#1a73e8;text-decoration:none\">Supplier Red Flags and Negotiation Scripts<\/a><\/li>\n<li><a href=\"#key-takeaways\" style=\"color:#1a73e8;text-decoration:none\">Key Takeaways<\/a><\/li>\n<li><a href=\"#faq\" style=\"color:#1a73e8;text-decoration:none\">FAQ<\/a><\/li>\n<\/ul>\n<\/div>\n<p>Choosing between FOB vs EXW vs DDP incoterms china determines who pays for freight, customs clearance, and duties. One wrong term can inflate your landed cost by 30% or leave you scrambling at the port without a customs broker. Understanding these three Incoterms is the difference between a smooth shipment and a $15,000 demurrage bill.<\/p>\n<h2 id=\"executive-summary\">Executive Summary<\/h2>\n<ul>\n<li><strong>Global trade volume:<\/strong> World merchandise trade grew by 2.6% in 2024 after a 1.2% decline in 2023, according to <a href=\"https:\/\/www.wto.org\/english\/news_e\/pres24_e\/pr961_e.htm\" target=\"_blank\" rel=\"noopener nofollow\">WTO<\/a> (2024).<\/li>\n<li><strong>China&#8217;s export dominance:<\/strong> China remained the world&#8217;s largest exporter, accounting for about 14% of global goods exports in recent trade datasets, according to <a href=\"https:\/\/www.wto.org\/english\/res_e\/statis_e\/statis_e.htm\" target=\"_blank\" rel=\"noopener nofollow\">WTO<\/a> (2025).<\/li>\n<li><strong>Latin America import value:<\/strong> Latin America and the Caribbean&#8217;s goods exports were valued at roughly USD 1.24 trillion in 2024, according to <a href=\"https:\/\/www.cepal.org\/en\/publications\" target=\"_blank\" rel=\"noopener nofollow\">ECLAC<\/a> (2025).<\/li>\n<li><strong>Mexico import scale:<\/strong> Mexico remained one of the world&#8217;s top import-driven manufacturing hubs, with merchandise imports exceeding USD 600 billion in recent years, according to <a href=\"https:\/\/data.worldbank.org\/indicator\/TM.VAL.MRCH.CD.WT?locations=MX\" target=\"_blank\" rel=\"noopener nofollow\">World Bank<\/a> (2025).<\/li>\n<li><strong>Brazil landed-cost relevance:<\/strong> Brazil&#8217;s merchandise imports were roughly USD 250 billion in the latest annual readings, making landed-cost terms highly relevant for sourcing decisions, according to <a href=\"https:\/\/data.worldbank.org\/indicator\/TM.VAL.MRCH.CD.WT?locations=BR\" target=\"_blank\" rel=\"noopener nofollow\">World Bank<\/a> (2025).<\/li>\n<\/ul>\n<figure style=\"margin:32px 0;text-align:center\"><img class=\"lazyload\" decoding=\"async\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271344%27%20height%3D%27768%27%20viewBox%3D%270%200%201344%20768%27%3E%3Crect%20width%3D%271344%27%20height%3D%27768%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/goodcantrading.com\/wp-content\/uploads\/2026\/05\/inline-fob-vs-exw-vs-ddp-incoterms-china.png\" alt=\"\" style=\"width:100%;max-width:800px;height:auto;border-radius:8px;box-shadow:0 4px 12px rgba(0,0,0,0.1)\"><\/figure>\n<h2 id=\"what-fob-exw-ddp-mean\">What FOB, EXW, and DDP Actually Mean<\/h2>\n<p>The FOB vs EXW vs DDP incoterms china debate boils down to who controls the shipment and where responsibility transfers. Each term defines a precise handoff point between seller and buyer.<\/p>\n<h3>EXW (Ex Works)<\/h3>\n<p>The supplier&#8217;s only obligation is to make goods available at their factory gate in China. You arrange everything: domestic trucking to the port, export customs clearance, ocean or air freight, import clearance, and final delivery. <strong>EXW<\/strong> gives you maximum control but demands you have a reliable <a href=\"https:\/\/goodcantrading.com\/ar\/china-sourcing-agent\/\">trusted China sourcing agent<\/a> or freight forwarder on the ground.<\/p>\n<p>Many Chinese suppliers quote EXW because it minimizes their workload. They package the goods, you handle the rest. The catch: if you lack local logistics expertise, you will overpay for domestic trucking and export documentation.<\/p>\n<h3>FOB (Free on Board)<\/h3>\n<p>The supplier delivers goods onto the vessel at the Chinese port and clears export customs. Once the cargo crosses the ship&#8217;s rail, risk transfers to you. You pay for ocean freight, marine insurance, import duties, customs brokerage, and inland transport in your country. <strong>FOB<\/strong> is the most common term for sea freight because it splits responsibilities cleanly at the port of loading.<\/p>\n<p>FOB pricing is transparent. You know exactly what the supplier charges and what your forwarder charges. This transparency makes it easier to compare quotes from multiple vendors.<\/p>\n<h3>DDP (Delivered Duty Paid)<\/h3>\n<p>The supplier assumes all costs and risks until goods arrive at your warehouse door. This includes export clearance, international freight, import duties, VAT, customs brokerage, and final delivery. <strong>DDP<\/strong> sounds convenient, but it often hides inflated margins because the supplier bundles logistics and duties into one opaque price.<\/p>\n<p>DDP works best for small parcels or Amazon FBA shipments where the supplier has established logistics partnerships. For large orders, you typically pay 15-25% more than if you arranged freight yourself under FOB.<\/p>\n<h2 id=\"cost-comparison-breakdown\">Cost Comparison Breakdown<\/h2>\n<p>Real-world pricing reveals the hidden costs in each term. The table below compares a 500-unit order of home goods shipped from Yiwu to Mexico City.<\/p>\n<table style=\"border-collapse:collapse;width:100%;margin:28px 0;font-size:15px;box-shadow:0 1px 3px rgba(0,0,0,0.06);border-radius:8px;overflow:hidden\">\n<thead>\n<tr style=\"background:#1a73e8;color:#ffffff\">\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Cost Component<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">EXW<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">FOB<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">DDP<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Product cost (500 units @ $8)<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$4,000<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$4,000<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$4,000<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Yiwu to Shanghai port trucking<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$280<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Export customs clearance<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$150<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Ocean freight (Shanghai to Manzanillo)<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$850<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$850<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Marine insurance<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$60<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$60<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Mexico import duty (16% tariff)<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$640<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$640<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Mexico IVA (16% VAT)<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$640<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$640<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Customs brokerage<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$220<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$220<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Manzanillo to Mexico City trucking<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$320<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$320<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Included<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\"><strong>Total landed cost<\/strong><\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\"><strong>$7,160<\/strong><\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\"><strong>$6,730<\/strong><\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\"><strong>$8,050<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Why FOB Usually Wins<\/h3>\n<p>FOB saves you $430 compared to EXW because the supplier&#8217;s domestic logistics rates in China are lower than what you would pay as a foreign buyer. FOB saves you $1,320 compared to DDP because you control freight procurement and avoid the supplier&#8217;s markup on duties and delivery.<\/p>\n<h3>When EXW Makes Sense<\/h3>\n<p>EXW works if you consolidate shipments from multiple suppliers in one Chinese warehouse before export. Our <a href=\"https:\/\/goodcantrading.com\/ar\/warehouse-and-consolidation\/\">warehouse and consolidation<\/a> service in Yiwu allows buyers to collect EXW goods from five or six factories, inspect everything under one roof, then ship one consolidated container FOB.<\/p>\n<h3>When DDP Makes Sense<\/h3>\n<p>DDP is practical for air freight samples under 100 kg or e-commerce parcels where the supplier uses DHL, FedEx, or UPS accounts with negotiated rates. For a 20 kg sample shipment, DDP via express courier costs $180-$250 and arrives in 4-6 days, faster than arranging your own courier account.<\/p>\n<h2 id=\"risk-transfer-points\">Risk Transfer Points and Responsibilities<\/h2>\n<p>Risk transfer defines who pays if goods are damaged, lost, or delayed. Misunderstanding this point causes more disputes than any other aspect of FOB vs EXW vs DDP incoterms china.<\/p>\n<table style=\"border-collapse:collapse;width:100%;margin:28px 0;font-size:15px;box-shadow:0 1px 3px rgba(0,0,0,0.06);border-radius:8px;overflow:hidden\">\n<thead>\n<tr style=\"background:#1a73e8;color:#ffffff\">\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Incoterm<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Risk Transfers At<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Seller Responsibility<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Buyer Responsibility<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">EXW<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Factory gate<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Package goods, make available for pickup<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">All transport, export clearance, freight, import clearance, delivery<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">FOB<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Ship&#8217;s rail at port of loading<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Domestic transport to port, export customs, load onto vessel<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Ocean freight, insurance, import clearance, inland delivery<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">DDP<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Your warehouse door<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">All transport, export clearance, freight, import duties, VAT, customs brokerage, final delivery<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Unload at destination, store goods<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Export Customs Clearance<\/h3>\n<p>Under EXW, you must arrange export customs clearance in China. This requires a Chinese business license or a licensed customs broker. Most foreign buyers lack this, making EXW impractical unless you work with a sourcing agent who holds the necessary export credentials.<\/p>\n<p>Under FOB and DDP, the supplier handles export clearance. The supplier&#8217;s customs broker files the export declaration, pays any China export taxes, and obtains the stamped customs form needed for the bill of lading.<\/p>\n<h3>Import Customs Clearance<\/h3>\n<p>Under EXW and FOB, you arrange import clearance in your destination country. You need a registered importer number (RFC in Mexico, CNPJ in Brazil, EORI in the EU), a customs broker, and accurate commercial invoices and packing lists.<\/p>\n<p>Under DDP, the supplier arranges import clearance. The supplier must either have a legal entity in your country or hire a local customs broker. Many Chinese suppliers lack this capability outside the US and EU, making DDP quotes unreliable for Latin America.<\/p>\n<h3>Marine Insurance<\/h3>\n<p>Under EXW and FOB, you purchase marine insurance to cover loss or damage during ocean transit. Typical cost is 0.3-0.5% of cargo value. Without insurance, you bear 100% of the loss if the container falls overboard or the vessel sinks.<\/p>\n<p>Under DDP, the supplier is responsible for insurance. Verify this in writing. Some suppliers quote DDP but exclude insurance, leaving you exposed.<\/p>\n<h2 id=\"which-incoterm-by-shipment-type\">Which Incoterm by Shipment Type<\/h2>\n<p>The optimal term depends on shipment size, speed requirements, and your logistics experience. The wrong choice adds cost or risk.<\/p>\n<h3>Sample Orders (Under 100 kg)<\/h3>\n<p>Use <strong>DDP via express courier<\/strong> (DHL, FedEx, UPS). The supplier arranges door-to-door delivery with duties and taxes prepaid. Cost is $180-$350 for 20-50 kg to Mexico, Colombia, or Brazil. Transit time is 4-6 days.<\/p>\n<p>Avoid FOB for samples. Ocean freight minimums make small shipments uneconomical, and air freight coordination requires a freight forwarder, adding $200-$300 in handling fees.<\/p>\n<h3>LCL (Less Than Container Load)<\/h3>\n<p>Use <strong>FOB<\/strong>. LCL shipments (1-10 cubic meters) benefit from your ability to shop freight forwarders for the best consolidation rates. FOB gives you control over the forwarder relationship and allows you to compare quotes from three or four logistics providers.<\/p>\n<p>EXW adds $150-$250 in domestic China trucking that the supplier would handle more cheaply under FOB. DDP inflates the price by 20-30% because the supplier lacks LCL consolidation expertise.<\/p>\n<blockquote style=\"border-left:4px solid #1a73e8;padding:12px 18px;background:#f0f6ff;margin:20px 0\"><p><strong>LCL cost example:<\/strong> 5 cubic meters Yiwu to Mexico City FOB costs $650-$850 ocean freight plus $220 customs brokerage. Same shipment DDP quoted at $2,100-$2,400 all-in.<\/p><\/blockquote>\n<h3>FCL (Full Container Load)<\/h3>\n<p>Use <strong>FOB<\/strong>. A 20-foot container from Shanghai to Manzanillo costs $1,200-$1,800 in 2026, depending on season. A 40-foot high-cube container costs $1,800-$2,600. FOB lets you negotiate directly with ocean carriers or NVOCCs (non-vessel operating common carriers) for the best rates.<\/p>\n<p>DDP for FCL shipments adds 15-25% to your landed cost because the supplier bundles freight, duties, and delivery into one opaque price. You lose visibility into each cost component.<\/p>\n<h3>Air Freight (Time-Sensitive)<\/h3>\n<p>Use <strong>FOB<\/strong> for shipments over 100 kg. Air freight from China to Latin America costs $4.50-$7.50 per kg in 2026, depending on volume and destination. FOB allows you to use your own air freight forwarder, who can consolidate your shipment with other cargo to reduce per-kg rates.<\/p>\n<p>DDP air freight works only if the supplier has an established air freight partnership. Verify the quoted rate includes fuel surcharges, security fees, and airport handling, which can add 30-40% to the base rate.<\/p>\n<h3>Amazon FBA and E-Commerce<\/h3>\n<p>Use <strong>DDP to Amazon warehouse<\/strong>. Amazon requires delivery to their fulfillment centers with all duties and taxes paid. The supplier or their freight forwarder books the appointment, delivers the pallets, and handles any Amazon-specific labeling or prep requirements.<\/p>\n<p>Our <a href=\"https:\/\/goodcantrading.com\/ar\/amazon-fba-prep-service\/\">Amazon FBA prep service<\/a> in Yiwu includes product inspection, poly-bagging, FNSKU labeling, case packing, and DDP delivery to US, Mexico, or EU Amazon warehouses. This eliminates the risk of Amazon rejecting your shipment due to non-compliant packaging.<\/p>\n<p>[CASE STUDY PLACEHOLDER: A Colombian Amazon seller saved $4,200 on a 500-unit shipment by switching from supplier DDP to our FOB consolidation plus FBA prep service]<\/p>\n<h2 id=\"country-specific-landed-cost\">Country-Specific Landed Cost Implications<\/h2>\n<p>Import duties, VAT, and customs procedures vary dramatically by destination. The same $10,000 FOB shipment from China lands at different costs in Mexico, Brazil, Colombia, Chile, and Argentina.<\/p>\n<table style=\"border-collapse:collapse;width:100%;margin:28px 0;font-size:15px;box-shadow:0 1px 3px rgba(0,0,0,0.06);border-radius:8px;overflow:hidden\">\n<thead>\n<tr style=\"background:#1a73e8;color:#ffffff\">\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Country<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Typical Import Duty<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">VAT \/ IVA<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Customs Broker Fee<\/th>\n<th style=\"padding:14px 16px;text-align:left;font-weight:600\">Key Compliance Requirement<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Mexico<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">10-20%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">16%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$180-$300<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">RFC tax ID, NOM certification for electronics and toys<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Colombia<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">5-15%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">19%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$150-$250<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">RUT registration, certificate of origin for duty reduction<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Brazil<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">12-35%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">17-20% (state ICMS)<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$250-$450<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">CNPJ, INMETRO certification for electronics, Siscomex registration<\/td>\n<\/tr>\n<tr style=\"background:#f8f9fa\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Chile<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">6%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">19%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$120-$220<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">RUT, simplified customs for shipments under $3,000<\/td>\n<\/tr>\n<tr style=\"background:#ffffff\">\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">Argentina<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">0-35%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">21%<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">$200-$400<\/td>\n<td style=\"padding:12px 16px;border-bottom:1px solid #e5e7eb\">CUIT, SIRA import license (can take 30-60 days)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Mexico<\/h3>\n<p>Mexico charges 16% IVA on the sum of FOB value plus freight plus import duty. A $10,000 FOB shipment with $1,500 freight and 15% duty pays $1,500 duty plus $2,080 IVA, totaling $3,580 in taxes. Customs brokerage adds $200-$300.<\/p>\n<p>Mexican customs (SAT) requires an <strong>RFC tax ID<\/strong> before you can clear any commercial shipment. Obtaining an RFC takes 2-3 weeks if you are a foreign company without a Mexican subsidiary. Many first-time importers underestimate this requirement and face delays at Manzanillo or Veracruz port.<\/p>\n<h3>Brazil<\/h3>\n<p>Brazil has the highest landed costs in Latin America. Import duty ranges from 12% to 35% depending on HS code. ICMS (state VAT) adds 17-20%. A $10,000 FOB shipment with 20% duty and 18% ICMS pays $2,000 duty plus $2,160 ICMS, totaling $4,160 in taxes before brokerage fees.<\/p>\n<p>Brazil requires <strong>INMETRO certification<\/strong> for electronics, toys, and textiles. Obtaining INMETRO takes 4-8 weeks and costs $800-$2,500 depending on product category. Without INMETRO, your shipment will be held at Santos or Rio de Janeiro port indefinitely.<\/p>\n<h3>Colombia<\/h3>\n<p>Colombia offers lower duties than Mexico or Brazil, typically 5-15%. IVA is 19%. A $10,000 FOB shipment with 10% duty pays $1,000 duty plus $2,090 IVA, totaling $3,090 in taxes.<\/p>\n<p>Colombia requires a <strong>certificate of origin<\/strong> to qualify for reduced duty rates under trade agreements. Without a certificate, you pay the general tariff rate, which can be 10-15 percentage points higher.<\/p>\n<h3>Chile<\/h3>\n<p>Chile has the simplest customs process in Latin America. Flat 6% import duty on most goods. IVA is 19%. A $10,000 FOB shipment pays $600 duty plus $2,014 IVA, totaling $2,614 in taxes.<\/p>\n<p>Chile allows <strong>simplified customs clearance<\/strong> for shipments under $3,000 FOB, reducing brokerage fees to $80-$120. This makes Chile attractive for small test orders.<\/p>\n<h3>Argentina<\/h3>\n<p>Argentina&#8217;s import regulations change frequently due to economic instability. Import duty ranges from 0% to 35%. IVA is 21%. A $10,000 FOB shipment with 20% duty pays $2,000 duty plus $2,520 IVA, totaling $4,520 in taxes.<\/p>\n<p>Argentina requires a <strong>SIRA import license<\/strong> (Sistema de Importaciones de la Rep\u00fablica Argentina) before goods can be shipped. SIRA approval takes 30-60 days and is not guaranteed. Many Chinese suppliers refuse to ship to Argentina due to SIRA delays and payment restrictions.<\/p>\n<h2 id=\"supplier-red-flags\">Supplier Red Flags and Negotiation Scripts<\/h2>\n<p>Chinese suppliers sometimes quote misleading Incoterms to inflate margins or shift risk. Recognizing these red flags protects you from hidden costs.<\/p>\n<h3>Red Flag: EXW Quoted Higher Than FOB<\/h3>\n<p>A legitimate supplier&#8217;s EXW price should be $50-$150 lower per cubic meter than their FOB price, reflecting the cost of domestic trucking and export clearance. If EXW is quoted higher than FOB, the supplier is padding the EXW price to discourage you from arranging your own logistics.<\/p>\n<p><strong>Negotiation script:<\/strong> <\/p>","protected":false},"excerpt":{"rendered":"<p>FOB vs EXW vs DDP incoterms China explained for importers. Compare costs, risks, and responsibilities with real examples. Choose the right term for 2026.<\/p>","protected":false},"author":1,"featured_media":3526,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":"","rank_math_focus_keyword":"FOB vs EXW vs DDP incoterms china","rank_math_title":"FOB vs EXW vs DDP Incoterms China: 2026 Buyer's Guide","rank_math_description":"FOB vs EXW vs DDP incoterms China explained for importers. Compare costs, risks, and responsibilities with real examples. Choose the right term for 2026."},"categories":[1],"tags":[],"class_list":["post-3524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/posts\/3524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/comments?post=3524"}],"version-history":[{"count":2,"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/posts\/3524\/revisions"}],"predecessor-version":[{"id":3528,"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/posts\/3524\/revisions\/3528"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/media\/3526"}],"wp:attachment":[{"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/media?parent=3524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/categories?post=3524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodcantrading.com\/ar\/wp-json\/wp\/v2\/tags?post=3524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}