Incoterms are the standard trade terms published by the International Chamber of Commerce (ICC) that define who pays for freight, who handles customs, and where risk transfers in an international order. On our request-a-quote form, you will choose one of five terms — EXW, FOB, CIF, DAP, or DDP. Here is what each one means for you, the buyer, and which to pick for different order sizes.
The five terms at a glance
| Term | Who pays freight | Who handles customs | Risk transfers |
|---|---|---|---|
| EXW (Ex Works) | Buyer | Buyer | At the factory gate |
| FOB (Free On Board) | Buyer (after loading) | Buyer | When goods are on the ship |
| CIF (Cost, Insurance, Freight) | Seller (sea freight) | Buyer (import) | When goods are on the ship |
| DAP (Delivered at Place) | Seller | Buyer (import duties/taxes) | At the destination |
| DDP (Delivered Duty Paid) | Seller | Seller (all duties & customs) | At the destination |
What each term means for you as the buyer
EXW — you handle everything
The goods are ready at the factory, and everything after that is yours: export packing, customs, freight, insurance, import. This usually makes sense only if you already have a freight forwarder in China, or you are buying large volumes where you control the whole logistics chain yourself.
FOB — the classic container term
We deliver the goods to the port and load them onto the ship. From that point, freight, insurance, and import are yours to arrange. FOB is the standard term for container-sized electrical orders — you get the lowest product price and full control of ocean freight, at the cost of doing the logistics legwork.
CIF — like FOB, but freight and insurance included
We pay the sea freight and basic insurance up to the destination port. You still handle import customs and delivery from the port. CIF is convenient when you do not want to book shipping yourself, but you should compare the freight portion against FOB quotes from your forwarder.
DAP — delivered to your door, duties on you
We handle everything up to the destination — packing, export, freight, delivery to your address. You only handle import duties and taxes (or your courier/forwarder bills them to you on arrival). DAP is a good middle ground for medium orders: door delivery without us needing your customs data.
DDP — the easiest for you
One price covers everything: product, freight, insurance, import duties, and customs clearance, delivered to your door. You pay once, and there are no surprise charges at the border. For small to medium parcels this is usually the most practical choice — you see the full landed cost before you order.
Which term should you choose?
A simple rule of thumb:
- Small parcels (under ~2 kg, courier or line-haul): DDP. The freight is small and predictable, and door delivery with duties included removes the biggest headache for buyers.
- Medium orders (boxes to half a pallet): DAP or DDP, depending on whether you want to handle import yourself.
- Container orders (20ft / 40ft): FOB or CIF. At this scale you are almost certainly working with a forwarder, and FOB gives you the best price control.
- You have your own China forwarder: EXW or FOB.
How elechub.ls quotes each term
Whichever term you choose, our quote is always split the same transparent way: product price + service fee + freight. Nothing is hidden. On the quote request form, select the term that fits your order — if you are not sure, choose DDP and we will confirm the all-in delivered price before you commit. Freight is quoted at cost from our logistics partners, and we will show you the breakdown.
This is also covered in our warranty and how it works pages — one clear process from request to delivery.