Incoterms is a set of rules that defines the rights and obligations of parties when goods are exported and imported. They are developed by representatives of the ICC (International Chamber of Commerce). Incoterms includes 11 rules. BoxCargo specialists work with all delivery terms every day and help clients choose optimal terms for imports from China.
2026 update: there is no separate Incoterms 2026 edition; the 2020 edition is used
In documents, writing only EXW, FOB, or FCA is not enough. The correct wording includes the code, the exact place, and the edition of the rules, for example FCA Shenzhen, Incoterms 2020.
| Rule | Practical meaning for the importer |
|---|---|
| EXW | The buyer takes on the greatest number of tasks |
| FCA | The supplier hands the goods over to the carrier at an agreed place |
| FOB | Used for sea freight |
| CIF | The seller pays for the sea leg and insurance |
| DAP/DDP | Convenient as an offer delivered to the destination |
Incoterms rules: how they differ
An Incoterms rule governs the delivery. It is denoted by three Latin letters.
All rules are divided into four groups: E, F, C, and D. The “higher” the group, the more obligations the sender has.
Rules for delivery by any mode of transport
| Name | Seller’s obligations | Buyer’s obligations |
|---|---|---|
| EXW | Pack, label, and make available at the warehouse | Collect, load, clear customs, and deliver |
| FCA | Pack, arrange export clearance, and load onto the vehicle | Arrange transport and complete import customs clearance |
| CIP | Pack, insure, arrange export clearance, and deliver | Unload, deliver to the warehouse, and arrange import clearance |
| DAP | Pack, insure, arrange export and transit clearance, and deliver | Unload and arrange import clearance |
| DDP | Everything, including import customs clearance | Only unload and deliver to the warehouse |
Rules for sea freight
| Rule | Seller’s obligations | Buyer’s obligations |
|---|---|---|
| FAS | Pack, arrange export clearance, and deliver to the port | Charter a vessel, load the goods, and arrange import clearance |
| FOB | Pack, arrange export clearance, deliver to the port, and load | Charter a vessel and arrange import clearance |
| CFR | Pack, arrange export clearance, deliver to the port, load, and charter a vessel | Unload and arrange import clearance |
| CIF | Everything under CFR, plus insurance | Unload and arrange import clearance |
How to choose an Incoterms rule
Rules that benefit the buyer
- Need to save money — EXW. The buyer bears the risk and transport costs, but the seller’s price is lowest.
- Beginner — DAP, DPU, or DDP. All responsibility rests with the seller.
- The seller extends credit — the same rules as for beginners.
- Want extra protection — CIF (the seller provides insurance).
Which Incoterms rule should you choose when purchasing in China?
It is best to choose EXW, FCA, or FOB: these rules allow the buyer to choose the carrier. If the Chinese supplier is given that choice, it will choose cargo shipping because it is cheaper. Cargo shipping is smuggling.
BoxCargo recommends EXW and FCA for clients who want full control over the logistics chain. The company’s own warehouses in Beijing, Guangzhou, Shanghai, and Yiwu allow goods to be collected directly from the supplier’s production site and routed transparently to a warehouse in Russia.
Where the delivery term is stated
- Contract
- Invoice
- Customs declaration
The correct order is: rule → place of delivery → edition. For example: FOB Ningbo, Incoterms 2020.
Questions and answers
Are there separate Incoterms 2026 rules? No. The 2020 edition is used.
Which rule is best for purchasing in China? EXW, FOB, or FCA — they allow you to choose the carrier.
How should the rule be written? Code + exact place + edition: FCA Shenzhen, Incoterms 2020.
Why should DDP from China be checked? DDP can sometimes conceal a non-transparent arrangement with no declaration or documents.
Need help choosing delivery terms and arranging shipping from China?
BoxCargo has more than 20 years of international logistics experience. We help choose the optimal Incoterms rule and arrange turnkey delivery with compliant customs clearance. Our own warehouses in China, certification, and labeling for marketplaces.
- Phone: 8 800 222-47-56
- Email: sales@boxcargo.ru
- Office: Victory Park Business Center, 2Zh Minskaya St., Moscow
- Website: boxcargo.ru