EXW — Ex Works
Under EXW, the seller makes goods available at their premises. The buyer arranges and pays for everything: loading, inland transport to the border, export customs clearance, international freight, and import clearance. This gives the buyer maximum control over logistics but also maximum responsibility. EXW is common when buyers have their own freight forwarder in China. Key risk: the buyer bears all risk from the moment goods leave the factory, including loading damage. For road freight from China, EXW works well if you have a reliable local agent who can handle Chinese export procedures.
FCA — Free Carrier
FCA is often more practical than EXW for road freight. The seller delivers goods to a named place — typically a warehouse or consolidation hub (e.g., Urumqi) — and handles export customs clearance. The buyer takes responsibility from that point. FCA is the recommended Incoterm for China road freight because the Chinese seller handles export formalities, which they are better positioned to complete. The risk transfers when goods are handed to the carrier. This avoids the EXW problem where a foreign buyer must manage Chinese export customs.
DAP — Delivered at Place
Under DAP, the seller delivers goods to the buyer's named destination, ready for unloading but not import-cleared. The seller bears all transport costs and risks until the truck arrives at the destination. The buyer handles import customs clearance and duties. DAP is popular for China–Turkey and China–Europe routes where the buyer wants door delivery but prefers to manage their own import formalities. This term provides a good balance: the seller manages the complex multi-border transit, while the buyer controls import procedures in their home country.
DDP — Delivered Duty Paid
DDP places maximum responsibility on the seller. The seller delivers goods to the buyer's door, fully cleared for import with all duties and taxes paid. The buyer simply receives the goods. DDP is the easiest option for the buyer but the most expensive, as the seller includes all logistics costs plus a margin. For China–Central Asia and China–Turkey routes, DDP quotes are typically 15–25% higher than DAP because the seller must manage import procedures in the destination country. DDP works best when the seller has a local partner or branch in the destination country.