Incoterms for textile wholesale: EXW, FCA, FOB, CIF, DAP and DDP

The Incoterms® 2020 rules most used for wholesale textile orders, who arranges transport, where risk passes, and who pays import duties.

Written by the Olyo team. Updated .

Finished orders packed for shipping

Incoterms® rules define who arranges and pays for each stage of delivery. With EXW you collect from the seller; with FOB or CIF the seller delivers onto a ship; with DAP the seller delivers to your door and you clear customs; with DDP the seller also pays import duties and taxes.

The rules buyers use most

The International Chamber of Commerce publishes the Incoterms® rules; the current edition is Incoterms® 2020. FOB and CIF apply only to sea and inland waterway transport.

The rules buyers use most
RuleSeller deliversMain transport paid byImport clearance and duties
EXW (Ex Works)At the seller’s premisesBuyerBuyer
FCA (Free Carrier)To the buyer’s carrier at an agreed placeBuyerBuyer
FOB (Free On Board)On board the vessel at the port of shipmentBuyerBuyer
CIF (Cost, Insurance and Freight)On board the vessel; seller pays freight and insurance to destination portSellerBuyer
DAP (Delivered at Place)At the named destination, ready for unloadingSellerBuyer
DDP (Delivered Duty Paid)At the named destination, cleared for importSellerSeller

Choosing for a small order

For small first orders, courier delivery on DAP terms is often simplest. For larger or repeat orders, buyers with their own forwarder often prefer FCA or EXW.

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