Incoterms 2020
Incoterms 2020: Which One to Choose for Your Import (FOB, CIF...)
What are Incoterms?
Incoterms are international rules, established by the International Chamber of Commerce, that define how costs, risks, and responsibilities are split between buyer and seller in an international transaction. The current version, Incoterms 2020, includes eleven rules, four of which are particularly common in China–France imports. Let's go through them one by one, starting with the one that commits the seller the least.
EXW (Ex Works): minimum seller involvement
Under EXW, the buyer takes charge of the goods as soon as they leave the factory, including local transport in China to the port or airport. This is the Incoterm that places the most responsibility on the importer, who must organize the entire logistics chain themselves — though they also retain the most control over that same chain.
FOB (Free On Board): shared at loading
Under FOB, by contrast, the seller covers costs and risks up to the point the goods are loaded onto the vessel. The buyer then takes over for sea freight, insurance, and customs clearance, so responsibility is clearly split on either side of the loading point. FOB is also one of the most commonly used Incoterms for imports from China.
CIF (Cost, Insurance and Freight): more comfort, less control
Under CIF, the seller organizes and pays for sea freight and insurance up to the destination port. The buyer collects the goods on arrival and handles customs clearance, but loses visibility over carrier selection, since logistics management is entirely handed to the seller.
DDP (Delivered Duty Paid): the turnkey option
Finally, at the other end of the spectrum, under DDP the seller handles the entire process, including customs clearance and final delivery to the buyer. This is the most convenient Incoterm for importers, who have almost no logistics to manage — but it's also the one that leaves importers with the least control over actual costs.
Choosing the right Incoterm
Ultimately, the choice of Incoterm directly affects the price quoted by the supplier and the level of control the importer retains over their logistics chain. A poorly suited choice can significantly weigh on a project's profitability — which is why a local sourcing bureau can help select the best option for each project.
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MOZAIIK IMPORT is far more than a China sourcing agent: we are your buying office and
sourcing bureau, your trusted French-speaking partner on the ground, dedicated to securing and optimising all your imports.
For several years, we have been supporting French and African companies of all sizes from SMEs to industrial players in finding reliable suppliers, negotiating, controlling quality, and managing the transport and customs clearance of their goods.Recognised field expertise
Being present in China makes a real difference. Thanks to our local presence, we can verify factories, monitor production, anticipate problems and provide you with clear reports at every stage. This proximity allows us to guarantee reliable and secure purchasing which is often the most critical point for companies looking to import from China.
A comprehensive service offering
As a buying office and sourcing company in China, we offer complete and personalised support:
• Technical studies in product development
• Reliable supplier sourcing: identifying and selecting factories suited to your needs, price negotiation and order securing
• Quality control and production monitoring: regular inspections and audits to ensure your products meet your requirements and standards
• Logistics and transport: sea, air or express freight, with transparent tracking and optimised cost management
• Customs clearance and final delivery: customs formalities fully managed through to your warehouse or point of sale
Our role is to simplify importing, reduce risks and allow you to focus on your market and the development of your business.
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