The Number on the Invoice Is Not the Number You Pay
Most buyers compare supplier quotes as though EXW and DDP were the same number in different currencies. They are not, and the difference between them routinely exceeds the margin on the product itself. On a European order of RF remotes, the freight and duty can be a significant fraction of the goods value — which means the incoterm decides whether the deal works.
The Four Terms Importers Actually Use
| Term | Means | Who pays what | Note |
|---|---|---|---|
| EXW | Ex Works, seller’s premises | Everything is the buyer’s cost | Cheapest on paper, most work for the buyer |
| FOB | Free On Board, port of loading | Export clearance and loading on the seller; main freight on the buyer | Useful for consolidating suppliers |
| CIF | Cost, Insurance and Freight to named port | Freight and minimum insurance included; duty and VAT not included | Convenient, still not door-to-door |
| DDP | Delivered Duty Paid | Everything including import duty | Most expensive to quote, often cheapest landed |
What Each Term Shifts Onto You
- EXW shifts everything: you arrange freight, insurance, export clearance and import clearance. You control the carrier and the cost, and you carry the risk for longer.
- FOB puts export clearance and loading on the supplier, and main carriage and insurance on you. Useful when you want to consolidate several suppliers into one container.
- CIF includes freight and minimum insurance to the named port. It does not include import duty or VAT, and it does not include delivery to your door.
- DDP puts everything on the supplier including import duty. Convenient, and the most expensive, because the duty calculation is the supplier’s cost plus their handling margin.
A DDP quote that looks twenty percent above EXW is not a markup. In many cases it is the cheapest realistic option once freight, insurance, duty and clearance are added to the EXW number.
How to Compare Quotes Properly
Take every quote and convert it to the same incoterm before comparing. Then add, for each: freight by CBM and weight, insurance, import duty at your HS code, VAT recoverability, and clearance fees. Only then is the comparison meaningful. A supplier who offers all four terms and explains the cost drivers is telling you more about their reliability than one who offers a single low EXW number.
Request a Quotation — Incoterms and Landed Cost
Send your target market, product line and annual quantity. We reply with a written EXW quotation, MOQ, lead time and a sample offer within one business day. MOQ 100 pcs per SKU.
Send Inquiry on WhatsAppEmail: Joanna@rfmando.com · MOQ 100 pcs per SKU · 1 free sample per SKU ($30 DHL, buyer pays) · Lead time 7-15 days · T/T 30/70 · EXW Xiamen
Catalogue references for the specification above: 868MHz rolling-code gate remote control, compatible with XT4 and XT2 SLH/LR transmitters and TY200 4-band 280-868MHz multi-frequency garage remote cloner for locksmith stock. All are MOQ 100 pcs per SKU, 7-15 day lead time, one free sample per SKU, and are supplied on our own PCBA and housing tooling with AQL 5% inspection available.
Where to Order
- RF Remote Controls — garage, gate and RTS compatible handsets
- Eaton DILM Contactors — frames, aux contacts and coils
- Locksmith Tools — duplicators, shells and blanks
- RF Manda — full product range and technical guides
| Term | Means | Who pays what | Note |
|---|---|---|---|
| EXW | Ex Works, seller’s premises | Everything is the buyer’s cost | Cheapest on paper, most work for the buyer |
| FOB | Free On Board, port of loading | Export clearance and loading on the seller; main freight on the buyer | Useful for consolidating suppliers |
| CIF | Cost, Insurance and Freight to named port | Freight and minimum insurance included; duty and VAT not included | Convenient, still not door-to-door |
| DDP | Delivered Duty Paid | Everything including import duty | Most expensive to quote, often cheapest landed |