EXW means the buyer collects the fabric at the factory gate. FOB means the seller delivers it onto the vessel at the named port. DDP means the seller handles everything and the buyer receives duty-paid goods at the door. Those three fabric Incoterms 2020 rules decide who pays freight, who clears customs, and where risk transfers, and the choice changes your landed cost by more than most buyers expect. For fabric orders from China, FOB is the default, EXW fits buyers with their own forwarder, and DDP is the all-in convenience option with a built-in premium.<\/p>\n

The Three Terms That Matter<\/h2>\n
Incoterms 2020, published by the International Chamber of Commerce, defines 11 rules for international trade, and fabric buyers use three of them constantly. The ICC Incoterms 2020 rules<\/a> are the authority every freight quote and sales contract references, so the definitions below are the ones written into your contract, not vague trade usage.<\/p>\n
EXW (Ex Works) places the least responsibility on the seller: the goods are made available at the mill, and the buyer arranges export clearance, trucking, freight, insurance, and import clearance. FOB (Free on Board) moves responsibility to the point where goods are loaded on the vessel nominated by the buyer at the named port; from that point the buyer owns the risk and the freight. DDP (Delivered Duty Paid) places the most responsibility on the seller, who delivers the goods cleared for import to the buyer’s named place, paying freight, insurance, and import duty along the way.<\/p>\n

EXW: Minimum Seller, Maximum Buyer Responsibility<\/h2>\n
EXW looks like the cheapest quote because it contains no freight at all, and it is the right term for buyers who run their own freight forwarder and export paperwork. The catch is that the buyer owns every step after the factory gate, including Chinese export clearance, which foreign buyers often underestimate. If your forwarder does not have an office in China, EXW can add weeks of coordination.<\/p>\n
EXW also shifts risk early. From the moment the rolls leave the mill, any damage, delay, or documentation error is your problem. For a first China order, EXW is rarely the saving it appears to be, because the mill’s export department normally handles clearance more efficiently than a remote buyer’s agent. Use EXW when you have a trusted forwarder in place and a clear export process.<\/p>\n
$\"customs$ <\/p>\n
FOB: The Default for Chinese Fabric Orders<\/h2>\n
FOB is the standard term for fabric from China because it splits responsibility at a clean point: the seller delivers to the named port (Shanghai, Ningbo, Shenzhen) and loads the goods on board the vessel, and the buyer takes over for ocean freight, insurance, and import clearance. The mill handles export clearance, which it does every day, and the buyer controls the freight cost, which is where the real money is spent.<\/p>\n
With FOB, your quoted fabric price is the fabric price. Freight is bought separately through your forwarder, and you see the ocean rate as its own line. For a 500-meter order from Wenzhou to Los Angeles, consolidated ocean freight runs roughly $800-1,200 (indicative, varies by carrier and season), and you will need a customs bond once the shipment value crosses the US informal-entry threshold of $2,500. On the mill side, our shipping tweed fabric from China<\/a> guide covers the documentation that keeps FOB deliveries moving.<\/p>\n
DDP: Duty Paid to Your Door<\/h2>\n
DDP puts the entire chain in the seller’s hands: freight, insurance, export and import clearance, and import duty, delivered to your named address. The quoted DDP price is a true all-in number, which makes budgeting simple and removes surprise charges at the border. Sellers who quote DDP have established courier or door-to-door freight accounts and import clearance experience in your market, and they absorb the compliance risk that first-time importers usually misprice.<\/p>\n
The trade-off is the premium. DDP pricing includes the seller’s freight management margin, and comparing a DDP quote to a FOB quote requires subtracting the hidden services. Ask for the FOB equivalent alongside any DDP quote, and check whether the seller’s DDP price includes insurance and the correct HS classification for your fabric. A DDP quote built on the wrong duty rate fails at the border, and the seller owns that failure.<\/p>\n
$\"fabric$ <\/p>\n
EXW vs FOB vs DDP: Side-by-Side<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n\n
Responsibility<\/th>\n EXW<\/th>\n FOB<\/th>\n DDP<\/th>\n<\/tr>\n<\/thead>\n
Export clearance (China)<\/td>\n Buyer<\/td>\n Seller<\/td>\n Seller<\/td>\n<\/tr>\n
Freight to port<\/td>\n Buyer<\/td>\n Seller<\/td>\n Seller<\/td>\n<\/tr>\n
Ocean or air freight<\/td>\n Buyer<\/td>\n Buyer<\/td>\n Seller<\/td>\n<\/tr>\n
Cargo insurance<\/td>\n Buyer<\/td>\n Buyer<\/td>\n Seller<\/td>\n<\/tr>\n
Import clearance<\/td>\n Buyer<\/td>\n Buyer<\/td>\n Seller<\/td>\n<\/tr>\n
Import duty and taxes<\/td>\n Buyer<\/td>\n Buyer<\/td>\n Seller<\/td>\n<\/tr>\n
Risk transfer point<\/td>\n Factory gate<\/td>\n On board vessel<\/td>\n Buyer’s door<\/td>\n<\/tr>\n
Best for<\/td>\n Buyers with own China forwarder<\/td>\n Most fabric orders<\/td>\n Small parcels, first orders<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
The table is the contract. Whatever the term says on paper is what the courts and freight forwarders follow, so the term on your purchase order must match the term on the commercial invoice, the bill of lading, and the freight quote. A mismatch between the sales contract and the shipping documents is a classic cause of customs delays.<\/p>\n
How the Term Changes Your Landed Cost<\/h2>\n
Run the numbers on a 500-meter tweed order at $12\/m FOB Wenzhou. The fabric itself costs $6,000. FOB adds export handling and port charges, ocean freight adds $800-1,200, insurance adds a modest premium on the declared value, and import duty depends on the classification: wool tweed sits under HS heading 5111. On the same order quoted DDP, the seller bundles all of that into one number, and the difference between the two quotes is exactly the services you are buying or doing yourself.<\/p>\n
Volume changes the freight math. For orders under 200 meters, air freight’s total landed cost per meter lands within 10-15% of sea freight LCL, because LCL (less than container load) carries a minimum handling fee that can exceed $150 per cubic meter. A 100m stock order from Fursone ships by air in 3-7 days and lands in under two weeks, which beats the ocean four-week delay for a small premium. For a 1,000-meter custom order, ocean FOB is the clear cost winner, and the term choice is mostly about who manages the freight.<\/p>\n
$\"custom$ <\/p>\n
Documents and Customs Duties<\/h2>\n
Every term still requires the same core documents: commercial invoice, packing list, bill of lading or airway bill, and certificate of origin. In the US, the importer files CBP Form 7501, submits the 10+2 Importer Security Filing at least 24 hours before ocean loading, and keeps import records for 5 years. The CBP basic import and export<\/a> guidance lists the requirements that apply regardless of the Incoterm you choose. Our import compliance and HS tariffs<\/a> guide maps the same rules to fabric shipments specifically.<\/p>\n
Duty is paid by the buyer under EXW and FOB and by the seller under DDP, but the classification is always the buyer’s commercial responsibility to verify. A wool tweed under heading 5111 and a synthetic tweed under a polyester heading can carry different duty rates, so confirm the precise 10-digit HS code for your composition before you lock the term. The choice of Incoterm does not change the duty rate, it only changes who writes the check.<\/p>\n
$\"logistics$ <\/p>\n
Which Term for Which Order Size<\/h2>\n
Order size is the fastest way to pick a term. Below 200 meters, use DDP or FOB with air freight, because air’s total landed cost lands within 10-15% of sea LCL and the speed protects your season. Between 200 and 1,000 meters, FOB with sea consolidation is the standard choice: the mill handles export, you control the freight, and the $800-1,200 consolidated rate for 500 meters keeps the shipping line visible. Above 1,000 meters, FOB with a full or shared container is almost always correct, and DDP pricing on container volume includes a freight margin you would rather negotiate yourself.<\/p>\n
First orders deserve DDP even at larger volumes. A buyer placing a first order from a new mill has no forwarder relationship, no import history, and no clearance experience for that market, and the DDP premium is cheaper than the mistakes a first shipment makes. After the first successful delivery, switch to FOB and keep the freight in-house. The same rule applies to stock fabric: Fursone’s 100-meter ready-stock rolls ship by air in 3-7 days, and for those small orders the DDP quote is frequently the fastest and most predictable route to a studio door.<\/p>\n
Insurance is the line buyers forget under every term. Under FOB and EXW, cargo insurance is the buyer’s responsibility and covers the invoice value of the shipment. Under DDP, the seller’s price should include it, and the contract should say so. A fabric order without cargo insurance is a gamble on a container that has no opinion about your season.<\/p>\n
Common Mistakes on Fabric Orders<\/h2>\n
The most expensive Incoterm mistake is a mismatch between the sales contract and the shipping documents. When the purchase order says FOB but the commercial invoice says EXW, or the bill of lading names a different port than the contract, the shipment sits at the border while the two parties argue. The fix is mechanical: write the same term on the PO, the invoice, the packing list, and the freight booking, and have one person check all four before dispatch.<\/p>\n
The second mistake is buying freight on the wrong volume assumption. Buyers quote ocean rates for a 300-meter order and find the forwarder charges a minimum LCL handling fee that can exceed $150 per cubic meter, wiping out the savings. Confirm the forwarder’s minimum chargeable volume before you choose sea over air. The third mistake is assuming the term includes insurance. Under FOB and EXW, cargo insurance is not included, and a claim on an uninsured shipment is a total loss of the fabric value.<\/p>\n
The fourth mistake is signing a DDP quote without checking the duty classification. If the seller priced the DDP on a lower-duty HS code than your fabric actually requires, the border charge is your problem at delivery time. Ask the seller to state the HS code used in the DDP calculation, and compare it against the classification for your composition before you accept the price.<\/p>\n
FAQ<\/h2>\n
What is the difference between FOB, EXW, and DDP?<\/h3>\n
EXW means the buyer collects at the factory. FOB means the seller delivers on board the vessel at the named port. DDP means the seller delivers duty-paid goods to the buyer’s door.<\/p>\n
Who pays freight on FOB?<\/h3>\n
The buyer pays ocean or air freight under FOB. The seller pays transport to the port and loading on board the vessel.<\/p>\n
Which Incoterm is best for buying fabric from China?<\/h3>\n
FOB is the default for most fabric orders because the mill handles export clearance and the buyer controls freight. DDP suits small parcels and first orders; EXW suits buyers with their own China forwarder.<\/p>\n
Is DDP more expensive than FOB?<\/h3>\n
The DDP price includes freight, insurance, import clearance, and duty, so it is higher than the FOB price. Compare both quotes and subtract the services to see the real difference.<\/p>\n
Does the Incoterm change the import duty rate?<\/h3>\n
No. The duty rate depends on the HS classification of the fabric. The Incoterm only decides who pays the duty at the border.<\/p>\n
Conclusion<\/h2>\n
Choose the Incoterm before you negotiate the price, and put it on the purchase order, the invoice, and the freight booking. FOB gives you freight control on larger orders, DDP gives you a fixed all-in cost on small ones, and EXW only pays off with a proven China forwarder. The freight and duty figures on any quote are only comparable when the term is identical.<\/p>\n
If you are placing a fabric order and want a straight answer on what each term includes, send your order size and destination to Fursone. We quote stock fabric from 100 meters with air shipment in 3-7 days and custom orders from 1,000 meters, and our ready-stock fabric program<\/a> ships on EXW, FOB, or DDP. Request a quote<\/a> with your volume and port, and we will return all three term prices.<\/p>\n

Responsibility<\/th>\n	EXW<\/th>\n	FOB<\/th>\n	DDP<\/th>\n<\/tr>\n<\/thead>\n
Export clearance (China)<\/td>\n	Buyer<\/td>\n	Seller<\/td>\n	Seller<\/td>\n<\/tr>\n
Freight to port<\/td>\n	Buyer<\/td>\n	Seller<\/td>\n	Seller<\/td>\n<\/tr>\n
Ocean or air freight<\/td>\n	Buyer<\/td>\n	Buyer<\/td>\n	Seller<\/td>\n<\/tr>\n
Cargo insurance<\/td>\n	Buyer<\/td>\n	Buyer<\/td>\n	Seller<\/td>\n<\/tr>\n
Import clearance<\/td>\n	Buyer<\/td>\n	Buyer<\/td>\n	Seller<\/td>\n<\/tr>\n
Import duty and taxes<\/td>\n	Buyer<\/td>\n	Buyer<\/td>\n	Seller<\/td>\n<\/tr>\n
Risk transfer point<\/td>\n	Factory gate<\/td>\n	On board vessel<\/td>\n	Buyer’s door<\/td>\n<\/tr>\n
Best for<\/td>\n	Buyers with own China forwarder<\/td>\n	Most fabric orders<\/td>\n	Small parcels, first orders<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n The table is the contract. Whatever the term says on paper is what the courts and freight forwarders follow, so the term on your purchase order must match the term on the commercial invoice, the bill of lading, and the freight quote. A mismatch between the sales contract and the shipping documents is a classic cause of customs delays.<\/p>\n How the Term Changes Your Landed Cost<\/h2>\n Run the numbers on a 500-meter tweed order at $12\/m FOB Wenzhou. The fabric itself costs $6,000. FOB adds export handling and port charges, ocean freight adds $800-1,200, insurance adds a modest premium on the declared value, and import duty depends on the classification: wool tweed sits under HS heading 5111. On the same order quoted DDP, the seller bundles all of that into one number, and the difference between the two quotes is exactly the services you are buying or doing yourself.<\/p>\n Volume changes the freight math. For orders under 200 meters, air freight’s total landed cost per meter lands within 10-15% of sea freight LCL, because LCL (less than container load) carries a minimum handling fee that can exceed $150 per cubic meter. A 100m stock order from Fursone ships by air in 3-7 days and lands in under two weeks, which beats the ocean four-week delay for a small premium. For a 1,000-meter custom order, ocean FOB is the clear cost winner, and the term choice is mostly about who manages the freight.<\/p>\n $\"custom$ <\/p>\n Documents and Customs Duties<\/h2>\n Every term still requires the same core documents: commercial invoice, packing list, bill of lading or airway bill, and certificate of origin. In the US, the importer files CBP Form 7501, submits the 10+2 Importer Security Filing at least 24 hours before ocean loading, and keeps import records for 5 years. The CBP basic import and export<\/a> guidance lists the requirements that apply regardless of the Incoterm you choose. Our import compliance and HS tariffs<\/a> guide maps the same rules to fabric shipments specifically.<\/p>\n Duty is paid by the buyer under EXW and FOB and by the seller under DDP, but the classification is always the buyer’s commercial responsibility to verify. A wool tweed under heading 5111 and a synthetic tweed under a polyester heading can carry different duty rates, so confirm the precise 10-digit HS code for your composition before you lock the term. The choice of Incoterm does not change the duty rate, it only changes who writes the check.<\/p>\n $\"logistics$ <\/p>\n Which Term for Which Order Size<\/h2>\n Order size is the fastest way to pick a term. Below 200 meters, use DDP or FOB with air freight, because air’s total landed cost lands within 10-15% of sea LCL and the speed protects your season. Between 200 and 1,000 meters, FOB with sea consolidation is the standard choice: the mill handles export, you control the freight, and the $800-1,200 consolidated rate for 500 meters keeps the shipping line visible. Above 1,000 meters, FOB with a full or shared container is almost always correct, and DDP pricing on container volume includes a freight margin you would rather negotiate yourself.<\/p>\n First orders deserve DDP even at larger volumes. A buyer placing a first order from a new mill has no forwarder relationship, no import history, and no clearance experience for that market, and the DDP premium is cheaper than the mistakes a first shipment makes. After the first successful delivery, switch to FOB and keep the freight in-house. The same rule applies to stock fabric: Fursone’s 100-meter ready-stock rolls ship by air in 3-7 days, and for those small orders the DDP quote is frequently the fastest and most predictable route to a studio door.<\/p>\n Insurance is the line buyers forget under every term. Under FOB and EXW, cargo insurance is the buyer’s responsibility and covers the invoice value of the shipment. Under DDP, the seller’s price should include it, and the contract should say so. A fabric order without cargo insurance is a gamble on a container that has no opinion about your season.<\/p>\n Common Mistakes on Fabric Orders<\/h2>\n The most expensive Incoterm mistake is a mismatch between the sales contract and the shipping documents. When the purchase order says FOB but the commercial invoice says EXW, or the bill of lading names a different port than the contract, the shipment sits at the border while the two parties argue. The fix is mechanical: write the same term on the PO, the invoice, the packing list, and the freight booking, and have one person check all four before dispatch.<\/p>\n The second mistake is buying freight on the wrong volume assumption. Buyers quote ocean rates for a 300-meter order and find the forwarder charges a minimum LCL handling fee that can exceed $150 per cubic meter, wiping out the savings. Confirm the forwarder’s minimum chargeable volume before you choose sea over air. The third mistake is assuming the term includes insurance. Under FOB and EXW, cargo insurance is not included, and a claim on an uninsured shipment is a total loss of the fabric value.<\/p>\n The fourth mistake is signing a DDP quote without checking the duty classification. If the seller priced the DDP on a lower-duty HS code than your fabric actually requires, the border charge is your problem at delivery time. Ask the seller to state the HS code used in the DDP calculation, and compare it against the classification for your composition before you accept the price.<\/p>\n FAQ<\/h2>\n What is the difference between FOB, EXW, and DDP?<\/h3>\n EXW means the buyer collects at the factory. FOB means the seller delivers on board the vessel at the named port. DDP means the seller delivers duty-paid goods to the buyer’s door.<\/p>\n Who pays freight on FOB?<\/h3>\n The buyer pays ocean or air freight under FOB. The seller pays transport to the port and loading on board the vessel.<\/p>\n Which Incoterm is best for buying fabric from China?<\/h3>\n FOB is the default for most fabric orders because the mill handles export clearance and the buyer controls freight. DDP suits small parcels and first orders; EXW suits buyers with their own China forwarder.<\/p>\n Is DDP more expensive than FOB?<\/h3>\n The DDP price includes freight, insurance, import clearance, and duty, so it is higher than the FOB price. Compare both quotes and subtract the services to see the real difference.<\/p>\n Does the Incoterm change the import duty rate?<\/h3>\n No. The duty rate depends on the HS classification of the fabric. The Incoterm only decides who pays the duty at the border.<\/p>\n Conclusion<\/h2>\n Choose the Incoterm before you negotiate the price, and put it on the purchase order, the invoice, and the freight booking. FOB gives you freight control on larger orders, DDP gives you a fixed all-in cost on small ones, and EXW only pays off with a proven China forwarder. The freight and duty figures on any quote are only comparable when the term is identical.<\/p>\n If you are placing a fabric order and want a straight answer on what each term includes, send your order size and destination to Fursone. We quote stock fabric from 100 meters with air shipment in 3-7 days and custom orders from 1,000 meters, and our ready-stock fabric program<\/a> ships on EXW, FOB, or DDP. Request a quote<\/a> with your volume and port, and we will return all three term prices.<\/p>\n

FAQ<\/h2>\n

What is the difference between FOB, EXW, and DDP?<\/h3>\nEXW means the buyer collects at the factory. FOB means the seller delivers on board the vessel at the named port. DDP means the seller delivers duty-paid goods to the buyer’s door.<\/p>\n

Who pays freight on FOB?<\/h3>\nThe buyer pays ocean or air freight under FOB. The seller pays transport to the port and loading on board the vessel.<\/p>\n

Which Incoterm is best for buying fabric from China?<\/h3>\nFOB is the default for most fabric orders because the mill handles export clearance and the buyer controls freight. DDP suits small parcels and first orders; EXW suits buyers with their own China forwarder.<\/p>\n

Is DDP more expensive than FOB?<\/h3>\nThe DDP price includes freight, insurance, import clearance, and duty, so it is higher than the FOB price. Compare both quotes and subtract the services to see the real difference.<\/p>\n

Does the Incoterm change the import duty rate?<\/h3>\nNo. The duty rate depends on the HS classification of the fabric. The Incoterm only decides who pays the duty at the border.<\/p>\n

What is the difference between FOB, EXW, and DDP?<\/h3>\n
EXW means the buyer collects at the factory. FOB means the seller delivers on board the vessel at the named port. DDP means the seller delivers duty-paid goods to the buyer’s door.<\/p>\n

Who pays freight on FOB?<\/h3>\n
The buyer pays ocean or air freight under FOB. The seller pays transport to the port and loading on board the vessel.<\/p>\n

Which Incoterm is best for buying fabric from China?<\/h3>\n
FOB is the default for most fabric orders because the mill handles export clearance and the buyer controls freight. DDP suits small parcels and first orders; EXW suits buyers with their own China forwarder.<\/p>\n

Is DDP more expensive than FOB?<\/h3>\n
The DDP price includes freight, insurance, import clearance, and duty, so it is higher than the FOB price. Compare both quotes and subtract the services to see the real difference.<\/p>\n

Does the Incoterm change the import duty rate?<\/h3>\n
No. The duty rate depends on the HS classification of the fabric. The Incoterm only decides who pays the duty at the border.<\/p>\n