Landed Cost Template: Compare EXW, FOB and DDP Quotes from China
Use a landed-cost template to compare EXW, FOB and DDP China quotations on the same scope, including freight, duties, taxes and destination charges.
A landed-cost comparison works only when every quotation is normalized to the same named origin, destination and service scope. EXW, FOB and DDP allocate tasks, cost and risk differently, so the quoted totals cannot be compared as if they include the same work.
Start with the named place and rule
Write the Incoterm, version and named place in full. The International Chamber of Commerce identifies Incoterms® 2020 as the current official rules and explains that the rules allocate defined cost, risk and obligations between seller and buyer.
An Incoterm does not determine product classification, legal compliance, payment terms or transfer of ownership by itself.
Landed-cost template
| Cost line | EXW | FOB | DDP |
|---|---|---|---|
| Product and packaging | Confirm | Confirm | Confirm |
| China factory pickup | Usually buyer scope | Usually seller scope to named port | Confirm included route |
| Export handling and clearance | Confirm separately | Normally seller obligation under the rule | Confirm |
| International freight | Add | Add | Confirm included |
| Insurance | Buyer decision | Buyer decision | Confirm |
| Duty, tax and brokerage | Add | Add | Confirm payer and legal treatment |
| Destination delivery | Add | Add | Confirm exact final location |
The table is a comparison prompt, not a substitute for the authoritative rules or customs advice.
Additional lines often missed
- Tooling and sample costs allocated to the order
- Inspection, testing and sourcing service fees
- Pallets, fumigation or special packaging
- Origin documentation and controlled-goods handling
- Port, terminal, deconsolidation and documentation charges
- Storage, demurrage, detention or failed-delivery risk
- Marketplace preparation and fulfillment receiving fees
- Exchange-rate and contingency assumptions
Calculate shipment and unit views
First calculate the shipment total. Then allocate costs to sellable units using a basis appropriate to the mix—quantity, weight, volume, value or duty classification. Record damaged, sample and non-sellable units separately when they affect the effective unit cost.
Illustrative comparison
Suppose an EXW quotation is lower than FOB by USD 500. If factory pickup, export documentation and origin handling add USD 750, the EXW option is not cheaper on the comparable FOB scope. The same logic applies to a DDP quote that appears complete but excludes taxes, remote delivery or importer responsibilities.
Questions to ask before accepting DDP
- Who is the importer of record?
- Which duty and tax amounts are included?
- Is customs classification documented?
- What destination charges can still be billed?
- Does delivery include the exact warehouse appointment or only an address?
- How are inspections, holds, storage and returns handled?
Start with the landed cost guide and compare shipping modes in our China shipping guide.
Turn the checklist into a controlled project
A useful sourcing plan begins with the product, quantity, customization, quality expectations, destination and required timing. Send MICStore the brief for an initial feasibility review.
Commercial terms, supplier availability, MOQ, lead time, compliance and shipping requirements are confirmed for each project. This guide is general information rather than legal, tax, customs or certification advice.
Frequently asked questions
How should EXW, FOB and DDP quotations be compared?
Normalize each quotation to the same named origin, destination, Incoterms version and service scope, then add every excluded pickup, export, freight, insurance, customs, tax, destination and delivery cost.
Is DDP always the complete landed cost?
No. Confirm the importer of record, duty and tax treatment, exact delivery point and any destination, storage or exceptional charges. A DDP label alone does not prove that every responsibility is lawful or included.
What is the most common landed-cost mistake?
Comparing headline prices with different scopes. A lower EXW product quote may become more expensive after pickup and export costs, while a freight quote may omit important destination charges.
