Before you ship, understand the Incoterms governing your transaction. The most common terms for China sourcing include:
| Term | Meaning | Best for |
| EXW (Ex Works) | You take responsibility at the factory gate. You arrange and pay for all transportation, insurance, and customs clearance. | Lowest unit price but highest risk/complexity. Suitable if you have local logistics capability. |
| FOB (Free on Board) | Supplier delivers goods to the named port (e.g., FOB Shenzhen) and loads them onto the vessel you choose. You bear costs/risks thereafter. | Popular middle ground option. |
| DDP (Delivered Duty Paid) | Supplier (or your 3PL) takes full responsibility – including shipping, insurance, customs clearance, and paying all duties – until delivery to your specified address. | Most convenient, but typically carries a higher service fee. |