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China Sourcing FAQ

Can you please explain the incoterms as I am new to importing?

There are quite a few International Commercial Terms pre-defined by the International Chamber of Commerce and used worldwide, and the terms we often come across are EXW, FOB, CFR and DAP.

  • EXW – Ex Works (named place of delivery)
  • FOB – Free on Board (named port of shipment)
  • CFR – Cost and Freight (named port of destination)
  • DAP – Delivered at Place (named place of destination)

What’s inland charge?

Inland charge is the combined costs of bringing the goods to the port of export and completing customs formalities under the trade term of EXW Yiwu. It consists of the following costs:

  • carriage to Ningbo or Shanghai port
  • space booking
  • documentation
  • customs declaration
  • THC – Terminal Handling Charge (unloading and loading fee at the port)

What’s the total cost of importing from China? I need to work out my finances.

Depending on the trade terms stipulated in the contract, you may need to pay for the following costs (I assume you come to Yiwu Market where suppliers quote you EXW price, and you purchase from a number of suppliers to fill a container):

  • merchandise cost
  • agent’s fee
  • inland charge
  • international freight
  • import customs clearance
  • import duty & taxes
  • cargo transportation to your warehouse


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