TS-TOOL/04 · LIVE
FORM TS-INC/01 · REV 2026-09
SOURCES · ICC Incoterms® 2020
Five questions about your shipment — your cargo type, destination, who you trust on the ground, and how much of the import dance you want the factory to run. We'll match the term to your real situation, not to what the sales manager wants you to sign.
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Decision rule: ICC Incoterms® 2020Updated: 2026-09
STEP 1 OF 5
What are you shipping?
FCL Full container load (1×20'/40' GP/HQ)Most cost-efficient over ~15 CBM. Factory loads at origin port. LCL Less-than-container (loose cartons, shared box)Common for first orders. Factory consolidates at warehouse. AIR Air freight (express or standard)Samples, urgent, high-value. Express (DHL/FedEx) or air freight (per kg).
STEP 2 OF 5
How do you want the factory to hand the goods to you?
EXW Ex-Works — I arrange everything from their doorCheapest on the factory quote, but YOU become the freight forwarder. You need an export license or hire a local agent. FCA Free Carrier — to your forwarder's warehouse in ChinaFactory delivers cleared-for-export goods to your nominated warehouse. Most flexible for buyers using their own forwarder. FOB Free On Board — onto the vessel at origin portFactory loads the ship. You pay freight from there. Standard for FCL sea — recommended for most buyers.
STEP 3 OF 5
Who is paying the main freight and insurance?
BUYER I'll book the freight and insurance myselfYou're in control of carrier choice and timing. Pair with FOB / FCA / CFR. FACTORY Factory arranges the freight (and maybe insurance)Convenient but factory adds margin and may choose the cheapest, slowest option. Pair with CIF / CIP / DAP / DDP.
STEP 4 OF 5
What does the factory have to handle at destination?
PORT ONLY Just get it to my country's port — I'll clear customs myselfCheapest factory-side. You handle import clearance, duty, last-mile. Pair with FOB / CFR / CIF / FCA. NAMED PLACE Deliver to a specific address (warehouse, Amazon FC)Factory or its forwarder handles import + last-mile. Pair with DAP / DPU. DOOR-TO-DOOR Factory handles everything, including duties and taxesHighest factory cost, lowest buyer effort. Risk: factory misclassifies HS code and you overpay duty. Pair with DDP.
STEP 5 OF 5
How much do you trust the factory with paperwork?
LOW First order / new supplier / never metKeep the factory's responsibility to origin only. Don't hand over import clearance or duty payment. MEDIUM 3+ orders, paid samples, video tour doneFactory can handle freight + import paperwork if you specify the broker. Verify HS code yourself. HIGH Long-term partner, audited, or audited-by-trusted-3rd-partyDDP viable. Still — never give them authority to pay duty without line-item invoice.
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RECOMMENDED
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Who pays for what
Why this term
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Decision rules — ICC Incoterms® 2020 (11 terms). Source: International Chamber of Commerce, Incoterms 2020: ICC rules for the use of domestic and international trade terms (publication 723E).Logic summary — cargo × handover × freight-payer × destination × trust → recommended term.Last reviewed — 2026-09-04.