Understand Who Handles What — Transport, Customs, Costs, and Risks
By Yan Luo | Samtop Display
Table of Contents
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.
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
🚛 DDP – Zero Hassle, All-Inclusive Delivery
Definition: Supplier delivers to your site, with all fees and taxes prepaid.
Supplier Handles:
- Export + shipping
- Import customs + VAT
- Delivery to store/warehouse
Buyer Handles:
- Nothing but receiving
✅ Pros:
- Turnkey setup
- No hidden fees
⚠️ Cons:
- Higher quote (all-included)
- Trust needed in supplier’s logistics
📌 Best for: Small teams, multi-country campaigns, or urgent launches
📦 Packaging & Pallet Responsibilities by Term
| Term | Packing Responsibility | Truck Loading | Labeling + Docs Included? |
|---|---|---|---|
| EXW | Supplier bulk pack only | Buyer | Optional |
| FOB | Supplier + export labeling | Supplier | Usually included |
| DDP | Supplier + QR/sticker setup | Supplier | Always included |
💡 Tip: Confirm packaging specs in your PO: cartons per SKU, pallet format, and QR code needs.
🧭 Real Scenarios & Recommendations
| Situation | Recommended Term |
|---|---|
| You work with your freight partner | EXW or FOB |
| You need one quote, no paperwork | DDP |
| Launching in 3+ regions simultaneously | DDP or split by region |
| Your ops team tracks all freight steps | FOB |
🛠️ Technical Capabilities @ Samtop
- QR-coded outer cartons by country
- Pre-packing photo report by shipping method
- EORI/VAT tax coordination for DDP orders
- Export docs: Bill of Lading, Commercial Invoice, COO
✅ You choose the term — we handle the complexity.
🧪 Real Case Study: Hybrid Shipping, Smooth Rollout
Client: Global cosmetics brand
Challenge: Needed to ship to 5 regions, including US stores (no import team) and EU central DC
Solution:
- US: DDP with customs + last-mile
- EU: FOB to Rotterdam port using client’s forwarder
Result:
✅ All shipments on time
✅ Cleared customs in all regions
✅ 0 delays or surprise charges
💬 FAQ (With JSON-LD Schema)
Q: Can I split one PO into multiple shipping terms?
A: Yes. We support DDP for US, FOB for EU, EXW for UAE — in one campaign.
Q: Is DDP really customs-free for me?
A: Yes — if you provide valid consignee info, EORI/VAT, we handle the rest.
Q: Why does DDP look more expensive?
A: Because it’s all-inclusive. But often it’s cheaper than fixing customs issues later.
📩 Need Help With Shipping Strategy?
At Samtop, we coordinate EXW, FOB, and DDP shipments for over 40 countries — with:
- QR-labeled cartons per region
- Export + import documentation
- Packaging matching retail channel specs
- Reliable freight + customs partners
📧 Contact: [email protected]
🌍 Website: www.samtop.com
