Understand Who Handles What — Transport, Customs, Costs […]
Understand Who Handles What — Transport, Customs, Costs, and Risks By Yan Luo | Samtop Display
When sourcing POP or visual merchandising displays from China, the shipping term (Incoterm) you choose determines who is responsible for transport, documents, customs clearance, warehousing, and risk at each stage.
“Why is the freight quote missing?” “Who clears customs in Germany?” “Why did we get stuck with surprise import fees?”
This article explains the difference between EXW, FOB, and DDP, helps you pick the right one, and avoid customs chaos.
retail display international delivery
You’ve got great displays — but shipping is delayed, and customs hits you with unexpected charges. You’re stuck figuring out who dropped the ball.
Was it the factory? The forwarder? You thought the quote included everything. But the supplier used EXW, and you didn’t realize you had to manage China export, insurance, and import tax. It’s not just frustrating — it can derail launches.
Learn the true difference between EXW, FOB, and DDP so you can plan, price, and deliver with zero surprises.
🚚 Shipping Terms Simplified
Term
Meaning
Buyer Handles
Supplier Handles
EXW
Ex Works
Everything after pickup
Goods ready at factory
FOB
Free On Board
Freight, customs, delivery
Inland transport, export clearance, loading
DDP
Delivered Duty Paid
Nothing — turnkey delivery
End-to-end: factory → destination delivery
🔍 EXW – Maximum Control, Maximum Risk
Definition: Buyer is responsible from the factory gate onward.
Buyer Handles:
Truck pickup
Export clearance
Ocean freight
Insurance
Import customs + VAT
Delivery to warehouse/store
✅ Pros:
Full cost visibility
Use your own forwarder
⚠️ Cons:
More coordination
Needs China-side agent
📌 Best for: Large retailers with in-house logistics
🛳️ FOB – Shared Responsibility, Balanced Setup
Definition: Supplier delivers to port and clears Chinese customs. Buyer takes over at port.
Supplier Handles:
Inland transport
Export customs
Port loading
Buyer Handles:
Sea freight
Import documents
Final-mile delivery
✅ Pros:
Most commonly used term
Clear handoff point
⚠️ Cons:
You still manage customs + inland delivery
📌 Best for: Mid-sized brands, retailers using nominated forwarders
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Hi, I’m Bob, the funder of SamTop.com, Our company makes visual merchandising props, retail display stands and window display decoration for many years now, and the purpose of this article is to share with you the knowledge related to retail displays from a Chinese supplier’s perspective.
