Incoterms for Bag Imports: EXW, FOB, CIF, DDP Explained
Published: August 15, 2026 | 6 min read
Incoterms define who pays and who bears risk in shipping. Picking the right one changes your cost and control. Here is what matters for bag imports.
The Main Terms
| Term | Seller pays | Buyer pays |
|---|---|---|
| EXW | Goods at factory | Everything after pickup |
| FOB | To port of load | Ocean + destination |
| CIF | To destination port | Import + delivery |
| DDP | To your door (duty paid) | Nothing extra |
Which Should You Pick?
- EXW - you control everything but handle all logistics; best if you have a forwarder.
- FOB - factory handles export; you book ocean. Common and balanced.
- CIF - factory books ocean; you handle import.
- DDP - simplest for buyers; factory delivers duty-paid to your door (higher price).
Cost and Control
EXW/FOB let you shop freight and lower cost if you have logistics muscle. DDP is easiest but rolls freight and duty into the unit price. New importers often start DDP or FOB. Our shipping page details each option.
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Frequently Asked Questions
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What is the easiest term for new importers?
DDP - the factory delivers duty-paid to your door; least logistics work.
Is FOB cheaper than DDP?
Often yes if you book your own ocean freight, but you manage more.
Who pays duty under CIF?
The buyer pays import duty; the factory only covers ocean to destination port.
What does EXW mean?
Ex Works - you collect goods at the factory and handle all transport and risk.
Can I choose the term?
Yes, agree it in the quote; it changes your total landed cost.