Every quote from a China packaging factory comes with one of three letters attached — EXW, FOB, or DDP — and that acronym changes what you’re actually paying for more than almost anything else on the quote. Pick the wrong one and you can end up owing customs clearance fees you didn’t budget for, or paying a factory to arrange freight at a worse rate than you’d get yourself.
Here’s what each term actually means, who’s responsible for what, and which one makes sense depending on how experienced you are at importing.
The Quick Answer
| Responsibility | EXW | FOB | DDP |
|---|---|---|---|
| Export customs clearance | Buyer | Seller | Seller |
| Main freight (sea/air) | Buyer arranges | Buyer arranges | Seller arranges |
| Import customs & duty | Buyer | Buyer | Seller |
| Delivery to your door | Buyer | Buyer | Included |
In short: EXW puts almost everything on you, FOB splits the work roughly down the middle, and DDP puts almost everything on the factory. Most first-time buyers do best with DDP, even though it looks like the highest quoted price — it usually isn’t once every other cost is added up.
EXW (Ex Works): Minimum Seller Responsibility
Under EXW, the factory’s job ends the moment your packaging is ready for pickup at their dock. You (or your freight forwarder) handle loading, export clearance, international freight, import clearance, duty, and final delivery. It looks like the cheapest quote on paper because it excludes the most line items — but “minimum obligation for the seller” doesn’t mean minimum work for you.
The catch most buyers miss: export clearance in China still typically needs the factory’s active cooperation (export licenses, paperwork tied to their business registration), even though EXW technically assigns that responsibility to you. Without a forwarder already coordinating with the factory on the ground, EXW can create more friction than it saves.
FOB (Free on Board): The Middle Ground
Under FOB, the factory handles getting your packaging to the port, cleared for export, and loaded onto the vessel. From that point, you (or your freight forwarder) take over — booking the ocean/air freight, paying import duty, and arranging final delivery. FOB is the most common term for buyers who already work with their own freight forwarder and want more control over freight rates and carrier choice.
DDP (Delivered Duty Paid): Maximum Seller Responsibility
Under DDP, the factory handles everything — export clearance, freight, import customs, duty, and delivery to your specified address. You get one all-in quote and the packaging shows up at your door. This is the simplest option for anyone ordering packaging from China for the first time, since there’s no freight forwarder to coordinate and no surprise customs bill waiting at the border.
Which Should You Choose?
- First time importing, no freight forwarder: DDP. One quote, one point of contact, nothing to coordinate on your end.
- You already have a freight forwarder and want rate control: FOB. You keep the freight cost negotiation in your own hands.
- Rarely the right call for smaller buyers: EXW. It shifts too much coordination work onto you for the savings it offers, unless you have an experienced forwarder already working directly with the factory.
One correction worth making: you may see “Incoterms 2026” referenced online — there is no new official edition for 2026. Incoterms 2020, published by the International Chamber of Commerce, remains the current standard in force.
Frequently Asked Questions
Which shipping term is cheapest for ordering packaging from China? EXW often looks cheapest on the initial quote, but by the time you add freight, customs brokerage, and import duty yourself, the total landed cost is often similar to or higher than a DDP quote — with far more coordination work.
Is DDP more expensive than FOB? The quoted number is usually higher because it includes freight and duty upfront, but the total landed cost is often comparable — DDP just moves the freight and duty cost into one line item instead of several separate ones.
What does FOB actually cover? The factory delivers your packaging to the export port, clears it for export, and loads it onto the vessel. Everything from that point forward — ocean freight, import customs, duty, final delivery — is on the buyer.
Is there a new Incoterms 2026 edition? No. Incoterms 2020 remains the current official version; “2026” in article titles typically just refers to the publication year, not a rules update.
Order Packaging with a Shipping Term That Fits You
PackPro quotes EXW, FOB, and DDP on every order, so you can choose the level of freight coordination that fits your experience. Most first-time buyers choose DDP for the simplicity. Request a free quote today — we respond within 24 hours.
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- US e-commerce brands — How US E-commerce Brands Get Custom Boxes from China with Low MOQ
- European brands — Custom Packaging from China for European Brands: Duties, VAT & DDP Shipping Guide
- Packaging costs — How Much Does Custom Packaging Cost? 2026 Pricing Breakdown