What is Incoterms?
Incoterms are standard international trade terms, published by the International Chamber of Commerce, that define where the seller's responsibility for cost and risk ends and the buyer's begins.
Every international quote is tied to an Incoterm. The same goods cost different amounts under EXW, FOB, CIF or DDP because each term includes a different share of transport, insurance and customs work.
The terms most used when buying from China are EXW (collect at the factory), FOB (delivered on board at the Chinese port), CIF (freight and insurance paid to your port), DAP (delivered to your address, duties unpaid) and DDP (delivered with duties paid).
When comparing quotes, always check that they use the same Incoterm and the same named place.