8 November 2026China–Gulf trade, sourcing and shipping
Dhow & Dragon
Trade, sourcing and shipping between China and the Gulf
Shipping and customs · Guide

EXW, FOB, CIF, DDP: Incoterms explained for UAE importers

The three letters on your quote decide who pays for what and who carries the risk. A plain-English guide.

Key points
  • Incoterms are rules from the International Chamber of Commerce.
  • They decide costs and risk, not the price of the goods alone.
  • FOB is a common choice for importers with their own forwarder.
  • Compare quotes on the same Incoterm, or the cheapest one may not be.

A quote of "USD 4 per unit" means little until you know the Incoterm. It might include delivery to your warehouse, or nothing beyond the factory gate. Incoterms, published by the International Chamber of Commerce, set out who pays and who carries the risk at each stage.

TermSeller handlesBuyer handlesGood when
EXW (Ex Works)Goods ready at factoryEverything from pickup, including China export clearanceYou have a strong agent in China
FOB (Free On Board)Delivery to the ship and export clearanceSea freight, insurance, importYou use your own forwarder
CIF (Cost, Insurance, Freight)Freight and basic insurance to destination portUnloading onward, import dutiesYou want a simple quote to a port
DDP (Delivered Duty Paid)Everything to your door, including dutiesReceiving the goodsSmall orders, first-time importers

Which to choose

Many Gulf importers choose FOB and appoint their own forwarder: the factory handles China, and you control freight and clearance at home. DDP is convenient but can hide costs, and it can complicate how duties and VAT are recorded. Ask your accountant and clearing agent.

Compare like with like

When suppliers quote different terms, convert them to the same basis before comparing. Use our landed cost worked example.

Related: sea or air freight from China to the UAE.

How Husbar can help

Husbar China Line helps Gulf brands compare quotes, choose Incoterms and coordinate freight from the factory to the warehouse. See Husbar China Line.

Frequently asked questions

What is the most common Incoterm for imports from China?

FOB is widely used by importers who appoint their own forwarder.

Is DDP a good idea?

It is simple, but check exactly what is included and how duties and VAT are handled.

Who publishes Incoterms?

The International Chamber of Commerce. The current edition is Incoterms 2020.

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