Incoterms and Shipping for Sportswear Buyers: EXW, FOB, CIF and DDP

Incoterms 2020 in one paragraph

Incoterms are rules published by the International Chamber of Commerce that define who arranges transport, who pays which costs and where risk passes from seller to buyer. The current edition is Incoterms 2020. Always write the rule with a named place and edition, for example "FOB Ningbo, Incoterms 2020". Incoterms do not cover payment, ownership transfer or product quality; those belong in the contract.

The rules sportswear buyers meet most

EXW — Ex Works

The seller makes goods available at its premises. The buyer arranges and pays for everything else: loading, export clearance, freight, insurance, import clearance and duties. Risk passes when goods are placed at the buyer's disposal. EXW looks cheapest but puts export formalities on the buyer, which can be hard to handle from abroad.

FCA — Free Carrier

The seller delivers goods, cleared for export, to the buyer's carrier at a named place. Often a better fit than EXW or FOB for courier and air shipments and for containerised cargo.

FOB — Free On Board

Sea and inland waterway only. The seller clears goods for export and loads them on board the vessel nominated by the buyer at the named port. Risk passes once goods are on board. The buyer pays main freight, insurance, import clearance and duties. FOB is very common for sea shipments of garments from Asia.

CIF — Cost, Insurance and Freight

Sea only. The seller pays freight and minimum insurance to the destination port, but risk passes when goods are loaded at the origin port, as with FOB. The buyer handles import clearance, duties and delivery from the port. CIF insurance under Incoterms 2020 is the minimum cover (Institute Cargo Clauses C) unless the parties agree more.

DAP — Delivered At Place

The seller delivers to a named destination, ready for unloading. The buyer pays import duties and taxes and handles import clearance.

DDP — Delivered Duty Paid

The seller delivers to the named place, cleared for import, with duties and taxes paid. This is the most convenient for the buyer and the most demanding for the seller. Check who is the importer of record and whether VAT/GST can be reclaimed.

Responsibility summary

Rule	Export clearance	Main freight	Risk passes	Import duties
EXW	Buyer	Buyer	At seller's premises	Buyer
FCA	Seller	Buyer	Handed to buyer's carrier	Buyer
FOB	Seller	Buyer	On board at origin port	Buyer
CIF	Seller	Seller	On board at origin port	Buyer
DAP	Seller	Seller	At named destination	Buyer
DDP	Seller	Seller	At named destination	Seller

Choosing air, sea or courier

Express courier (door-to-door integrators) suits samples and small orders, often up to around 100 kg. It is fast — commonly a few working days — and handles customs brokerage, but cost per kilo is high.

Air freight suits urgent or mid-sized orders. Transit is typically under two weeks door to door, but you need a forwarder for airport pickup and clearance. Charges are based on chargeable weight: the greater of actual weight and volumetric weight (commonly length × width × height in cm ÷ 6,000 for air cargo).

Sea freight is cheapest per unit for large orders. LCL (less than container load) consolidates your cartons with others; FCL (full container load) books a whole 20' or 40' container. Port-to-port transit from Asia to Europe or the US is often 3–6 weeks, plus port handling and inland delivery.

A practical rule: if missing the deadline costs more than the freight difference, fly it.

Export documents you should receive

For a commercial shipment, expect at least:

• Commercial invoice: seller, buyer, description, HS code, quantity, unit price, total value, currency, Incoterm
• Packing list: cartons, contents, gross and net weight, dimensions
• Bill of lading (sea) or air waybill (air)
• Certificate of origin where needed for preferential duty
• Any destination-specific documents, such as textile labelling compliance or import permits

Ask your customs broker which HS codes apply. Knitted sports jerseys usually fall under HS chapter 61 (knitted apparel), but the exact code depends on fibre and garment type, and it drives the duty rate.

Writing a useful packing list

A good packing list lets your warehouse or club unpack without opening every box:

• Carton number (1 of N)
• Style, color, and size breakdown per carton
• Player names and numbers per carton for personalised kits
• Gross and net weight and carton dimensions
• Matching shipping marks on the outside of each carton

For club orders, consider packing by team or age group rather than by size, so each coach receives one box.

Storage and inventory after arrival

Bulk teamwear often sits in storage before distribution:

• Store cartons off the floor, in a dry, ventilated space away from direct sun
• Keep garments in polybags to prevent dust and color transfer
• Avoid compressing heat-transfer prints under heavy stacks in heat
• Count and check against the packing list on arrival, and report shortages within the agreed claim window
• Keep a simple stock sheet per size so reorders are based on real usage

Shipping checklist

• ☐ Incoterm with named place and "Incoterms 2020" on quote and invoice
• ☐ Clear who insures cargo and at what level
• ☐ Shipping method chosen against in-hand date
• ☐ Forwarder or courier account confirmed (for EXW/FCA/FOB)
• ☐ HS codes and duty estimate checked with a broker
• ☐ Commercial invoice and packing list reviewed before dispatch
• ☐ Carton marks and packing method agreed
• ☐ Arrival count and claim window understood

FAQ

Is FOB or DDP better for a first order?

DDP is simpler if you have no forwarder or import experience, because the seller handles delivery and duties. FOB usually gives better visibility and control of freight costs once you have a forwarder.

Does CIF mean the seller is responsible until my port?

No. Under CIF the seller pays freight and minimum insurance to your port, but risk passes to you when goods are loaded at origin.

Can I use FOB for air shipments?

FOB is intended for sea and inland waterway transport. For air and courier, FCA is the matching rule.

Who pays import VAT under DDP?

Under DDP the seller pays duties and taxes. Check whether you can still reclaim import VAT, as that depends on who is the importer of record.

Related guides

• Pricing and payment terms
• Labels, tags and packaging requirements
• Lead times and sampling milestones
• Browse products
• Send an inquiry with your destination