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What Incoterms Should I Know When Importing Linen Clothing?

Update Time:2026/9/7

LINENWIND B2B SOURCING ANSWER

What Incoterms Should I Know When Importing Linen Clothing?

Four Incoterms cover almost every custom linen clothing import from China: EXW, FOB, CIF and DDP, and the one a buyer should know first is FOB, because it is the standard term Chinese garment factories quote and the cleanest basis for comparing prices between suppliers. FOB means the factory's price includes the goods loaded on board the vessel at the origin port, with export clearance handled by the factory, and everything after that point, ocean freight, insurance, import clearance and duty, is arranged and paid by you. EXW pushes nearly all transport work to you from the factory door; CIF shifts the freight and minimum insurance cost to the factory while risk still transfers at the origin port and import clearance stays with you; and DDP is the only common term where the supplier delivers the goods cleared for import to your door, import duty included. The practical recommendation for a new buyer is to start with FOB quotes and use your own forwarder and customs broker, or to ask for DDP only when you want a single delivered price and you confirm exactly which destination address it covers. This answer explains each term, maps who carries cost and risk at every stage, and gives the questions to ask before you accept any Incoterm, with the full import process covered in our companion guide on importing linen clothing from China: customs, duties, Incoterms and logistics.

  • Short answer: EXW, FOB, CIF and DDP; FOB is the standard quote basis from Chinese linen factories and the best starting point for most buyers.
  • EXW: you collect at the factory and arrange everything from inland transport onward.
  • FOB: factory price includes loading on board at the origin port; you handle freight, insurance, clearance and duty.
  • CIF: factory pays freight and minimum insurance to the destination port, but risk and import clearance stay with you.
  • DDP: supplier delivers cleared for import to your door, duty paid; the widest supplier obligation.
  • At LINENWIND: we quote FOB Shenzhen or EXW Dongguan as standard and can arrange CIF or DDP through our forwarder when a buyer requests a delivered price.

The Four Terms, Each in One Line

EXW, Ex Works

The factory makes the goods available at its own premises, packed and ready. From that moment you own every step: inland trucking in China, export clearance, the vessel or flight, insurance, import clearance and duty. Use it when you have a China-side agent or forwarder collecting goods.

FOB, Free On Board

The factory price covers the goods loaded on board the vessel at the named origin port, and the factory handles export clearance. You book the ocean freight, insure the cargo and manage import clearance and duty at destination. This is the standard quote basis in Chinese garment trade.

CIF, Cost Insurance and Freight

The factory pays the freight and minimum marine insurance to the named destination port, so the price looks "delivered", but risk still transfers when the goods are on board at origin, and import clearance and duty remain yours. A middle option, not a door-to-door term.

DDP, Delivered Duty Paid

The supplier arranges freight, insurance, import clearance and duty and delivers the goods to the agreed destination address. The widest supplier obligation and the simplest buyer experience, priced accordingly, and always worth asking exactly which address and which delivery service the price assumes.

Who Carries Cost and Risk at Each Stage

StageEXWFOBCIFDDP
Factory production and packingFactoryFactoryFactoryFactory
Inland transport to origin port or airportBuyerFactoryFactoryFactory
Export clearance in ChinaBuyerFactoryFactoryFactory
Loading on board the vesselBuyerFactoryFactoryFactory
Main ocean or air freightBuyerBuyerFactoryFactory
Insurance during transitBuyerBuyerFactory (minimum cover)Factory
Import clearance at destinationBuyerBuyerBuyerFactory
Import duty and taxesBuyerBuyerBuyerFactory
Delivery to final addressBuyerBuyerBuyerFactory
Risk transfer pointFactory premisesOn board, origin portOn board, origin portNamed destination place

"Factory" and "Buyer" describe who arranges and pays for each stage under each term. CIF is the term buyers most often misread: it moves the freight and insurance cost to the supplier but does not move the risk, which still transfers at the origin port, and it never includes import clearance or duty. The practical distinction between CIF and DDP is covered in the companion import guide.

How a New Buyer Should Choose

Incoterms are a negotiation outcome, not a fixed rule, and the right choice depends on your logistics setup, your order size and how much control you want over the freight cost. The decision flow we walk first-time buyers through:

1
Check whether you have a forwarder and broker. If you already work with a freight forwarder and a licensed customs broker, FOB is the natural basis: you control the freight buying, the clearance and the duty payment, and you can compare factory quotes cleanly because every factory can quote FOB to its nearest port.
2
If you have no logistics setup yet, decide between FOB with a new forwarder and DDP with the supplier. FOB plus a forwarder keeps cost transparency and builds your own import capability; DDP gives one delivered price but bundles the logistics margin into the supplier quote, so ask for the DDP breakdown or compare it against a parallel FOB quote.
3
Confirm the destination detail before accepting DDP. A DDP price to a seaport city differs from a DDP price to an inland warehouse, so state the delivery address and the service level, and confirm who files the import declaration in your name.
4
Use CIF only as a deliberate middle option, and EXW only with a China-side agent. CIF suits sea-freight buyers who want the supplier to handle carriage and minimum insurance while keeping clearance in their own hands; EXW suits buyers whose own agent collects at the factory, and it is rarely the best choice for a first import.

Questions to Ask Before You Accept Any Incoterm

The Incoterm checklist: which Incoterm does this price use, and which named port or place · what exactly is included, export clearance, loading, inland delivery, insurance, and what is excluded · are carton dimensions and gross weights provided so the freight can be quoted accurately · who files the export declaration and who provides the certificate of origin · if DDP, which destination address and which delivery service · if CIF, what level of insurance is arranged and to which port · and is the price valid for a stated period, since ocean freight rates move. Our answers on whether linen dress manufacturers support global shipping and export and on estimating shipping cost cover the supplier side of these questions in practical terms.

The Three Incoterm Misunderstandings

Where buyers trip up. First, comparing quotes on different terms: a price that includes ocean freight and one that does not are different products, so convert every quote to the same basis, usually FOB or DDP to the same destination, before comparing. Second, assuming CIF means "delivered": CIF risk transfers at the origin port, import clearance and duty stay with you, and the insurance is minimum cover, so a CIF price is not a landed cost. Third, treating DDP as a fixed all-in number without a destination: the delivery address and the service level define the DDP price, and an inland address costs more than a port-city address, so write the address into the order confirmation. All three are scope problems, not price problems, and they are the same scope discipline covered in our guide to verifying a linen clothing manufacturer before you order.

Cost, MOQ and Lead Time Context

The Incoterm sits on top of the manufacturing price, and the manufacturing side at LINENWIND, a Dongguan linen clothing factory with 20+ years of OEM/ODM experience, is quoted separately from freight so the two layers stay transparent:

  • MOQ: 60 pieces per style per color; the price basis for every quote.
  • Swatches: free from our stock library of 50+ linen specifications.
  • Counter samples: 7-12 days; sample fees of $40-150 are fully credited to production.
  • Bulk production: 25-35 days after sample approval; first orders 35-60 days including sampling.
  • Freight basis: we quote FOB Shenzhen or EXW Dongguan as standard, and arrange CIF or DDP through our forwarder on request, always stating the destination and the delivery service.
  • Quality and compliance: AQL 2.5 final inspection, ISO 9001 production, OEKO-TEX Standard 100 testing, and commercial documents, packing list and shipping marks produced from the same order record so customs clearance is not delayed by mismatched paperwork.

Timeline: When the Incoterm Matters in the Order Flow

At quotation — the Incoterm is fixed in writing, with the named port and what is included and excluded.
At packing — carton dimensions and gross weights are recorded so the freight quote matches the actual cargo.
At shipment — the transport document, commercial invoice and packing list travel together under the agreed term.
At destination — duty and taxes are paid against the current rate for your classification, confirmed with your broker at import time.

What to Send with Your First Inquiry

  1. Destination country and city, so we can confirm which Incoterm makes sense and, for DDP requests, quote the right delivery service.
  2. Garment types and target quantities against our MOQ of 60 pieces per style per color, and the number of colors per style.
  3. Fabric direction: from our stock library of 50+ linen specifications or your own spec, with composition so the commercial description matches the classification input.
  4. Preferred Incoterm if you already have a forwarder and broker, or a note that you want us to propose FOB or a DDP delivered price for comparison.

Planning a custom linen program and want a transparent quote that separates the factory price from the freight? Send your tech pack with the destination and target quantities, and we will confirm the fabric, the MOQ position, the production window and the packed carton data your forwarder needs, with a first response within 48 hours.

Send an Inquiry Contact LINENWIND

Sources: LINENWIND production records (MOQ 60, sampling 7-12 days, bulk 25-35 days, first order 35-60 days, sample fees $40-150 credited, free swatches, 50+ stock specs, AQL 2.5), ISO 9001 / OEKO-TEX Standard 100 / SEDEX certification documentation, FOB Shenzhen / EXW Dongguan standard quote basis. Incoterms (EXW, FOB, CIF, DDP) described in standard international trade terms as used in the Incoterms framework; duty and clearance treatment at destination described in general terms to be confirmed with a licensed customs broker at import time. Related: Importing Linen Clothing from China: Customs, Duties, Incoterms and Logistics · Do linen dress manufacturers support global shipping and export? · Can you give me an estimate of shipping cost? · How do I start a custom linen order?

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