Incoterms for hardware (EXW, FOB, DAP, DDP)

Under EXW (Ex Works), the seller only makes goods available at their premises. The buyer arranges export clearance, freight, insurance, import clearance, and duties, and carries the risk from pickup. Under FOB (Free On Board), the seller handles export formalities and loads the goods onto the vessel at the named origin port; risk passes to the buyer once loaded, and the buyer arranges sea freight onward.

Under DAP (Delivered At Place), the seller moves the goods all the way to the agreed destination and carries the risk of transit, but the buyer is the importer of record and pays import duties and taxes. Under DDP (Delivered Duty Paid), the seller does everything including import clearance and duties, so the buyer receives the goods with nothing left to arrange. DDP shifts the most cost and risk to the seller.

For server imports from China, the term sets your true landed cost and how much logistics you personally manage. New importers often prefer DAP or DDP for simplicity, while experienced buyers use FOB to control freight and consolidate shipments. Get the term in writing and model the duties, VAT, and freight before comparing quotes, since an EXW price is not comparable to a DDP price. Fanxi sells EXW Dalian only; our partner freight forwarder flies the order out and can deliver DAP or DDP to any country in 1–2 weeks.