Fabric Cost & Logistics: A Buyer’s Guide to Importing from China

Fabric looks cheaper per metre than it is — until you add freight, duty and handling. The buyers who budget well are the ones who understand the full landed cost before they order. Here is the practical picture for importing fabric from China.

Incoterms: FOB, EXW and DDP Explained

Incoterms decide who pays for what, and they change your real price dramatically.

• EXW (Ex Works) — the supplier’s price only. You arrange and pay for everything after the factory gate.
• FOB (Free On Board) — the price includes loading onto the vessel. You pay international freight, duty and local delivery.
• DDP (Delivered Duty Paid) — the supplier covers everything to your door, including duty. Simplest, but priced highest.

Always compare quotes on the same Incoterm — otherwise you are comparing apples to oranges.

Sea Freight vs Air Freight

• Sea freight — much cheaper per metre, but slow (weeks). Best for volume and non-urgent orders.
• Air freight — fast (days) but expensive per metre. Best for samples, urgent fill-ins and small, high-value orders.

LCL vs FCL: Which Container Fits?

• LCL (Less than Container Load) — you share a container and pay for your space. Ideal for small-to-medium orders.
• FCL (Full Container Load) — you rent the whole container. Cheaper per cubic metre when you have volume.

For a small brand, LCL is usually the right call until volume justifies a full container.

Duty, HS Codes and Customs

Every fabric has an HS code that determines its import duty rate. Getting the code right matters, because a wrong code costs you money or delays customs clearance. Duty also depends on your destination market and any trade agreements or tariffs in force. Ask your supplier for the correct HS code and check the duty for your country before you commit.

The Hidden Costs Buyers Miss

• Freight and insurance
• Customs clearance and broker fees
• Duty and VAT
• Local delivery / trucking
• Sample shipping (often paid in advance)
• Currency and payment fees

How to Calculate Landed Cost

Landed cost = fabric price + freight + insurance + duty + customs + delivery. Work it out before ordering so your retail margin is honest. A fabric that looks cheap on paper can be expensive once landed — and vice versa.

Frequently Asked Questions

What is the cheapest Incoterm for importing fabric?

EXW is the lowest supplier price, but you pay all freight and duty. FOB is a common balance. DDP is the easiest but priced highest.

Should I ship by sea or air?

Sea is cheaper per metre but slow. Air is fast but expensive. Choose based on urgency and volume.

Is LCL or FCL better for a small order?

LCL is usually the right call for small-to-medium orders. Move to FCL once you have enough volume to fill a container.

How do I find the correct HS code for my fabric?

Ask your supplier for the HS code and verify it against your destination country’s schedule. The code determines your duty rate.

What is landed cost?

Landed cost is the fabric price plus freight, insurance, duty, customs and delivery. Calculate it before ordering to protect your margin.

Do I pay duty on fabric samples?

Small sample shipments are often low or duty-free, but rules vary by country. Confirm with your broker before sending.