← All sourcing guides

Shipping & Import

FOB vs EXW vs DDP

A practical comparison of EXW, FOB, and DDP responsibilities, questions, and trade-offs for China sourcing decisions.

2 min readUpdated Oct 6, 2026FactoryRoster Knowledge Hub

The short answer

EXW generally leaves the buyer with more transport responsibility from the seller's premises. FOB generally covers seller delivery through the named port and onboard stage for sea or inland waterway transport. DDP generally gives the seller extensive delivery responsibility to the named destination, including import clearance and duties under the Incoterm framework. The named place, transport mode, contract, and local rules still matter.

At-a-glance comparison

QuestionEXWFOBDDP
Seller responsibilityGoods available at premisesExport-side delivery to named port/onboard stageExtensive delivery to named destination
Export clearanceUsually buyer responsibilitySeller responsibility under the agreed termSeller responsibility under the agreed term
Main freightBuyerUsually buyerUsually seller arranges
Import clearanceBuyerBuyerSeller framework responsibility; confirm who acts
Duties/taxesBuyerBuyerSeller framework responsibility; confirm treatment
ControlHigh buyer controlShared with buyer-controlled main freightMore seller-managed
Common fitExperienced logistics buyer or pickup/consolidationSea/inland waterway buyers wanting freight controlConvenience where seller import capability is clear

EXW explained

EXW can offer buyer control over pickup, consolidation, and the main freight decision, but the buyer may also carry more export-side logistics and documentation complexity. Ask who loads, who handles export clearance, and which local charges are excluded.

FOB explained

FOB is associated with a named port and sea or inland waterway transport context. Confirm the named port, export clearance, loading/on-board responsibility, origin charges, and which party controls the main freight. Avoid vague wording such as “FOB factory.”

DDP explained

DDP can be convenient because the seller manages more of the delivery chain, but convenience does not remove questions. Ask who performs import clearance, who is importer of record, what duties and taxes are included, and which destination charges may remain. Confirm that the seller can legally and operationally handle the destination requirements.

Which should a beginner choose?

There is no universal best term. Consider freight experience, customs capability, shipment size, need for control, transparency, destination compliance, and your forwarder relationship. A lower unit price under EXW may not be cheaper after logistics; a DDP quote may hide assumptions that need to be documented.

Questions to ask a supplier

  • What named place or port applies?
  • Is export clearance included?
  • Is main freight included?
  • Who performs import clearance?
  • Are duties and taxes included?
  • Who is importer of record?
  • What destination charges may remain?
  • Which documents will I receive?
  • Which current Incoterm version is used in the contract?

Commercial boundary

Incoterms allocate delivery responsibilities and risk or cost points; they do not replace the sales contract, product compliance requirements, payment terms, insurance decisions, or customs obligations. FactoryRoster is not a freight or legal adviser. Confirm the final term with the supplier and qualified professionals where appropriate.

Use this with FactoryRoster

FactoryRoster is a research directory, not a transaction intermediary. Use supplier profiles to compare public business details and verification checks, then confirm current product, commercial, compliance, and payment details directly with the supplier.

Next steps

  • Search verified China suppliers by industry and supplier type.
  • Review the verification checks and evidence notes on the profile.
  • Use the Verification page to understand what each check does and does not prove.
Search verified suppliers See how verification works Browse supplier industries