DDP vs DAP vs EXW — Which Incoterm Is Best When Shipping from China?

CNXtrans
20 hours ago
7 min read

Shipping goods from China involves many decisions — product specs, supplier selection, packing, transport mode... and crucially: which Incoterm to use. The Incoterm you pick (DDP, DAP, EXW, etc.) determines who handles export, freight, customs, taxes and delivery — and who bears risk at each stage.

This long-form guide explains DDP, DAP and EXW step-by-step, compares them for typical import scenarios, highlights common pitfalls when shipping from China, and recommends when to pick each term. At the end I’ll explain why CNXtrans is a practical freight-forwarding partner for importers who want smooth, reliable door deliveries from China.

What are Incoterms — quick primer
Overview: EXW, DAP, DDP — definitions at a glance
Detailed breakdown: obligations, risks, and costs for each term
Which Incoterm is best in common situations (small importers, e-commerce, bulk buyers)
How Incoterms interact with transport modes (air, sea, rail, courier)
Customs, paperwork and common mistakes to avoid when importing from China
How to negotiate Incoterms with suppliers in China
Why use a freight forwarder (and how CNXtrans helps)
FAQs (answers to real search queries)
Recommended next steps & CTA

1. What are Incoterms — quick primer

Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC). They define the allocation of responsibilities, costs and risk between buyer and seller for international deliveries.

The currently used edition is Incoterms 2020 (these three terms are part of it). Incoterms do not replace contracts — they complement the sales contract by clarifying delivery obligations.

2. Overview: EXW, DAP, DDP — definitions at a glance

EXW (Ex Works): Seller makes goods available at their premises (factory, warehouse). Buyer is responsible for export, carriage, import customs, duties and final delivery. Maximum responsibility on buyer.
DAP (Delivered at Place): Seller delivers goods to an agreed place in the buyer’s country (e.g., buyer’s warehouse or port). Seller handles export and carriage, but import customs, duties and taxes are the buyer’s responsibility.
DDP (Delivered Duty Paid): Seller delivers goods to buyer’s named place and takes on all responsibilities including export, carriage, import clearance and payment of duties and taxes. Maximum responsibility on seller.

3. Detailed breakdown: obligations, risks and paperwork

Below are the core responsibilities for each Incoterm when shipping from China. (Short version: EXW = buyer handles almost everything; DAP = seller handles shipping to destination but buyer clears import; DDP = seller handles almost everything including import duties.)

EXW — What the buyer must do

Arrange pickup at supplier’s factory/warehouse in China.
Handle export formalities in China (sometimes suppliers help, but buyer is responsible).
Book ocean/air freight or courier.
Arrange origin cargo insurance (if desired).
Handle import customs clearance, pay duties/taxes, and arrange inland delivery in destination country.
Bear risk once goods are made available (at seller’s premises).

When EXW can be risky: Many buyers underestimate the complexity of export clearance from China and local pickup logistics (eligibility for export, export declaration, carrier access to supplier premises).

DAP — What the seller must do

Handle export clearance in China.
Arrange main carriage (sea/air/rail) and delivery to named place (e.g., buyer’s dock, warehouse or terminal).
Bear risk until goods are ready for unloading at the named place.
Buyer handles import clearance, duties and taxes, and unloading (unless contract states otherwise).

Key paperwork: Commercial invoice, packing list, bill of lading or airway bill, (sometimes) export declaration. Buyer must provide import docs and pay duties.

DDP — What the seller must do

Everything in DAP plus: seller or their agent performs import customs clearance and pays import duties and taxes.
Seller bears maximum cost and risk (until delivery at named place and after unloading if the contract includes it).

Important note: If seller is not experienced with import rules in buyer’s country (e.g., tax registration, local customs processes), DDP can be complicated to perform correctly.

4. Which Incoterm is best for common situations

The “best” Incoterm depends on your resources, experience, risk tolerance and whether you prefer the seller or the buyer to handle customs and logistics.

A. If you’re a small importer or e-commerce seller (limited logistics experience)

Best choice: DDP (when available) or DAP with a trusted local customs broker.

Why: You avoid unexpected customs headaches; DDP delivers a more predictable, low-friction experience for small teams. If DDP isn’t offered, DAP plus a reliable customs broker is the next best option.

Watchouts: DDP prices can be higher (seller factors in duty/tax handling and risk). Always confirm what “delivery” exactly includes (unloading? final-mile?).

B. If you’re an experienced importer with customs setup and logistics teams

Best choice: EXW or DAP.

Why: EXW gives you control and can be cheaper if you already operate customs brokerage and have strong freight-negotiation power. DAP is a good middle ground if you want the seller to handle export and main carriage.

Watchouts: With EXW you must ensure the supplier can legally release export goods (and that carriers can collect at their premises).

C. If you're doing high-value or regulated goods requiring strict compliance

Best choice: DDP in many cases — only if the seller (or their freight forwarder) has the required customs expertise and liability coverage.

Why: DDP centralizes responsibility with a seller/freight-forwarder who must ensure full compliance.

Watchouts: Ensure the seller/forwarder has experience with permits, licenses or special handling (e.g., pharmaceuticals, chemicals, electronics with battery regs).

D. If importing to marketplaces (Amazon FBA, etc.)

Best choices: DAP to the fulfillment center (if you handle import) or DDP if you want the seller to deliver fully cleared to the FBA warehouse.

Why: Marketplaces require strict labeling, documentation and delivery windows — confirm who arranges palletization and appointment booking.

5. How Incoterms interact with transport modes

Air freight: DAP and DDP are common for small shipments needing speed; EXW common if buyer controls pickup and consolidation. Air manifests and timely paperwork are crucial.
Sea freight (FCL/LCL): EXW is common for large-volume importers; DAP and DDP are popular for sellers offering integrated logistics. Port demurrage and detention fees can add risk — clear responsibilities in the contract.
Rail (China–Europe rail): DAP and DDP are frequently used due to multimodal handoffs. Ensure responsibility for cross-border customs is clearly assigned.
Courier (DHL, FedEx): Incoterms still apply; sellers often offer DDP for door-to-door courier shipments to make the experience seamless.

6. Customs, paperwork and common mistakes to avoid when importing from China

Must-have documents (typical)

Commercial invoice (accurate HS codes and item descriptions)
Packing list
Bill of lading / Airway bill / CMR / Railway consignment note
Certificate of origin (if preferential tariff applies)
Any product-specific certificates (CE, FCC, FDA, MSDS)

Common mistakes

Wrong HS codes: Misclassification causes customs delays and penalties.
Incomplete invoices: Vague descriptions raise red flags.
Assuming EXW is cheaper: Unplanned export/import handling can make EXW expensive and slow.
Not confirming DDP details: Many sellers quote DDP but exclude local fees (storage, appointment fees). Get a written scope.
Ignoring Incoterm version: Always specify e.g., “DAP [place], Incoterms 2020” to avoid ambiguity.

7. How to negotiate Incoterms with suppliers in China

Be explicit in your contract: “DDP to [address], Incoterms 2020” (or EXW with pick-up terms).
Ask for written scope: Who pays for unloading? Who handles customs documentation? What insurance is included?
Confirm driver/carrier access: If EXW, confirm carriers can collect from the supplier’s premises and if the supplier will provide loading assistance.
Request the forwarder details early: If seller says they’ll manage import clearance, ask for the forwarder’s name and contact.
Consider split responsibilities: You can use hybrid arrangements (e.g., supplier handles export and main carriage; buyer handles customs), but write it down.

8. Why use a freight forwarder — and how CNXtrans helps

Working with a professional freight forwarder reduces risk and delivers predictability. A forwarder can:

Manage bookings (sea, air, rail, courier) and consolidate shipments.
Handle export and import customs clearance and documentation.
Provide cargo insurance and advise on packing/fumigation.
Arrange last-mile delivery and warehouse services.
Forecast and manage delays, detention and demurrage exposure.

Why CNXtrans is a strong fit for importing from China

If you want a partner that simplifies door deliveries from China, CNXtrans is a practical choice for importers who want:

Reliable end-to-end handling (export in China → international carriage → import clearance → final delivery).
Experience with DDP and DAP shipments and local customs nuances.
Help with paperwork: commercial invoices, packing lists, certificates and correct HS code usage.
Visibility: shipment tracking and proactive updates so you’re not surprised by customs holds.
Scalable solutions: small parcel/express for e-commerce or FCL/LCL for larger volumes.

9. FAQs (answers to top search queries)

Q: What does DDP mean when shipping from China?

A: DDP (Delivered Duty Paid) means the seller/forwarder handles export, carriage, import clearance and pays duties/taxes to deliver the goods to the named place. It’s the most seller-responsible Incoterm.

Q: Is DAP better than EXW for small importers?

A: Usually yes. DAP removes the burden of export and international transport from the buyer, while EXW requires the buyer to manage pickup and export — tasks many small importers find complex.

Q: Who pays customs duties with DAP?

A: The buyer pays import duties and taxes under DAP, because import clearance is the buyer’s responsibility.

Q: Can a seller quote DDP if they don’t have a tax presence in my country?

A: They can quote DDP through a local agent or freight forwarder, but you should verify the forwarder’s credentials and ensure the seller understands local import compliance.

Q: My supplier only offers EXW — should I accept?

A: Only if you have logistics capacity. If not, request DAP or ask the supplier to work with your nominated forwarder. Many suppliers are flexible once they understand the requested scope.

Q: Which Incoterm is safest for goods with compliance requirements (e.g., electronics)?

A: DDP with an experienced forwarder is safer because the forwarder takes responsibility for compliance during import clearance. But ensure they know the specific regulations.

10. Recommended next steps (practical checklist)

If you’re about to import from China, use this checklist:

Decide whether you want seller-managed import (DDP) or to handle import (DAP/EXW).
Confirm Incoterm version: always specify “Incoterms 2020.”
Ask the supplier for a written delivery scope (who unloads, who pays local fees).
Verify HS codes and certificate needs before shipment.
Appoint a freight forwarder or customs broker — get their credentials and references.
Clarify insurance responsibility (who buys cargo insurance and coverage limits).
Confirm appointment and unloading requirements at the destination port or warehouse.

Final recommendation

Choose EXW only if you have a capable logistics team and customs setup.
Choose DAP if you want the seller to handle export and carriage but you prefer to control import clearance.
Choose DDP if you prefer a worry-free, end-to-end delivery where the seller (or their forwarder) handles import clearance and pays duties — but only if the seller/forwarder is experienced in your market.

If you want a partner who understands China export processes and can also manage DAP or DDP deliveries reliably, CNXtrans is a sensible choice. They can take care of export formalities in China, coordinate international carriage, and either assist your customs broker or perform DDP import clearance on your behalf — reducing surprises and freeing you to focus on growing your business.

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