WEBVTT

00:00.050 --> 00:03.622
Three quotes for the same shipment can look like a price comparison.

00:03.622 --> 00:08.928
EXW, FOB and DDP are really three different hand-off structures.

00:08.928 --> 00:12.168
Before comparing numbers, ask three questions.

00:12.168 --> 00:14.757
Who can legally complete export clearance?

00:14.757 --> 00:16.760
Who controls the main transport?

00:16.760 --> 00:20.956
And who can act as importer in the destination country and pay the duties?

00:20.956 --> 00:25.931
If the hand-off is vague, a cheap quote can simply hide the cost until later.

00:25.931 --> 00:28.864
EXW creates the earliest hand-off.

00:28.864 --> 00:33.354
The seller normally makes the goods available at the factory or named place.

00:33.354 --> 00:38.954
The buyer takes on collection, loading in many cases, export and import work.

00:38.954 --> 00:46.403
If the buyer cannot handle export formalities in China, compare FCA instead of assuming EXW is simpler.

00:46.403 --> 00:49.974
FOB is for sea or inland waterway transport.

00:49.974 --> 00:54.477
The seller clears export and delivers the goods on board at the named port.

00:54.477 --> 01:00.089
Risk transfers when the goods are on board; the buyer controls the main freight and import.

01:00.089 --> 01:06.403
For containers handed to a terminal before loading, FCA may match the real hand-off better.

01:06.403 --> 01:12.410
DDP pushes the seller's responsibility furthest, including import clearance and duties.

01:12.410 --> 01:19.936
But DDP does not automatically include cargo insurance, and it does not magically make a foreign seller a lawful importer.

01:19.936 --> 01:28.290
With a very low DDP quote, verify the importer of record, tax evidence, exception charges and return responsibility.

01:28.290 --> 01:39.221
For a usable comparison, name the exact place and split loading, export, freight, insurance, import clearance, duties and product compliance line by line.

01:39.221 --> 01:42.793
Incoterms allocate delivery, cost and risk.

01:42.793 --> 01:48.915
They do not settle ownership, payment, customs value or product certification by themselves.

01:48.915 --> 01:51.135
So do not begin with the cheapest term.

01:51.135 --> 01:57.538
Start with legal ability, choose the hand-off and control you need, then compare the full landed cost.

01:57.538 --> 02:00.063
That is how a quote becomes executable.