Short answer
The lowest unit price is not the lowest landed cost.
EXW, FOB, CIF, and DDP allocate delivery tasks, costs, and transport risk differently. A useful comparison starts with the same finished packaging, quantity, packing method, shipment assumptions, destination, and required date. Then it prices every step between the factory and the receiving point.
Incoterms do not replace the purchase agreement. They do not by themselves define product quality, payment timing, ownership transfer, inspection rights, remedies, or the complete technical specification. Keep those subjects in the quotation, approved sample record, purchase order, and sales contract.
Write the complete reference. Use the rule, exact named place or port, and agreed version—for example, “FCA named terminal, Incoterms® 2020”—then list included and excluded services.
30-second comparison
Start with delivery, risk, freight, and customs.
This is a procurement view, not the complete legal text. Use the current official rulebook and project-specific advice before contracting.
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| Term | Delivery and risk point | Main transport | Customs focus | Packaging buyer must clarify |
|---|---|---|---|---|
| EXW | Goods made available at the named premises, not loaded under the rule. | Buyer arranges from pickup. | Buyer carries export and import formalities under the rule; export practicality needs review. | Loading, pickup access, export clearance, origin fees, carrier control, and transport risk from the premises. |
| FOB | Goods delivered on board at the named shipment port; sea or inland waterway only. | Buyer arranges main carriage. | Seller handles export; buyer handles import. | Whether FOB suits the handover, exact port, terminal activity, vessel cutoff, bill of lading, insurance, and destination charges. |
| CIF | Risk transfers on board at shipment, although seller-paid carriage runs to the named destination port. | Seller arranges sea or inland waterway carriage and specified insurance. | Seller handles export; buyer handles import. | Shipment port, insurance level, destination handling, customs, storage, and delivery after the port. |
| DDP | Goods delivered at the exact named destination, ready for unloading. | Seller arranges transport to destination. | Seller carries extensive export and import obligations under the rule. | Seller's legal ability, importer arrangement, duties, taxes, brokerage, exceptions, access, appointment, and unloading. |
Landed-cost boundary
Put every charge on one route map.
Ask each supplier or forwarder to price the same shipment assumptions. Separate the product from logistics so a low factory price cannot hide an incomplete route.
- finished packaging, inserts, individual protection, master cartons, pallets, labels, and shipping marks;
- samples, tooling, inspection, loading, factory pickup, origin handling, export clearance, and documentation;
- main freight, fuel or security adjustments, insurance, transshipment, and route-specific surcharges;
- destination terminal or handling, customs brokerage, examination, storage, demurrage or detention where applicable;
- import duty, tax, importer services, local delivery, appointment, access, redelivery, unloading, and receiving.
Use the custom packaging cost and MOQ guide to align the product scope before comparing the logistics layer.
EXW and DDP
The two extremes create different control problems.
A term with fewer seller obligations is not automatically cheaper for the buyer; a delivered term is not automatically simpler for every destination.
Check whether the buyer can manage origin
Confirm who loads the vehicle, can enter the site, obtains export evidence, completes export formalities, coordinates the carrier, and responds to missed pickup or cargo damage. ICC notes that FCA can be more practical when the seller should handle export clearance.
Check whether the seller can manage destination
Confirm that the seller can legally and practically complete import and tax obligations, identify the importer arrangement, and provide usable customs and tax records. If that setup is not workable, compare DAP with a buyer-appointed customs broker.
Match the term to the capable party
A buyer with negotiated freight and an established broker may value carrier control. A smaller buyer may value a coordinated delivery quotation, but still needs transparent exclusions and a named destination.
Keep documents connected to the PO
Align the commercial invoice, packing list, transport record, customs data, carton count, gross weight, shipment marks, inspection release, and delivery evidence with the approved order and route.
Container shipments
Do not default to FOB because it sounds familiar.
FOB and CIF are rules for sea or inland waterway transport. Their delivery point is tied to goods being on board the vessel, which may not match the earlier handover of containerized packaging to a terminal or carrier.
- Compare FCA with FOBWhen cartons or pallets are handed to a carrier or terminal before vessel loading, identify that real point and compare FCA instead of using FOB by habit.
- Compare CIP with CIFFor containerized or multimodal transport where the seller arranges carriage and insurance, review whether CIP better matches the handover and route.
- Separate cost from riskUnder CIF, seller-paid freight to the destination port does not mean the seller retains transport risk until that port. Record both boundaries.
- Name the point preciselyA city, port, terminal, warehouse, and full delivery address create different cost and operational boundaries. Avoid a country name alone.
Comparable quotation
Use one worksheet for every supplier.
A quote is comparable only when the packaging specification, shipment assumptions, named point, time window, and exclusions are comparable.
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| Field | Record | Common gap |
|---|---|---|
| Packaging scope | Structure, dimensions, material, insert, print, finishing, versions, quantity, tolerance, sample, inspection, and packing. | Two quotes use different board, finish, insert assembly, or acceptable quality assumptions. |
| Shipment data | Units per carton, external carton dimensions, net and gross weight, carton count, total cube, pallet plan, stackability, and dangerous-goods status if relevant. | Freight is estimated from preliminary dimensions that change after production packing. |
| Commercial term | Rule, named place or port, Incoterms version, currency, validity, payment, included services, and exclusions. | “FOB China” or “DDP USA” is written without an exact point or exception list. |
| Customs and tax | Exporter, importer, broker, classification responsibility, value basis, origin evidence, duties, taxes, and record access. | The buyer cannot recover or support a tax or customs entry because the operating party was never defined. |
| Destination | Full address, postal code, contact, hours, appointment, vehicle limits, liftgate or unloading, floor access, storage, and redelivery. | A port or curb delivery is mistaken for booked warehouse receiving. |
| Timing and risk | Required in-hand date, production release, pickup window, route, estimated transit, buffers, handover point, insurance, claims path, and evidence. | A freight estimate is treated as a guaranteed delivery date or full risk cover. |
Packaging-specific inputs
Freight changes when the finished pack changes.
Rigid boxes, assembled inserts, mailers, folding cartons, paper bags, and labels occupy very different cube and require different protection. Confirm shipment data after the packing method is approved, not from a concept rendering.
- flat, assembled, collapsible, nested, or individually protected delivery format;
- units per export carton and acceptable carton gross weight;
- external carton dimensions, pallet footprint, maximum height, overhang, and stackability;
- humidity, compression, abrasion, crushing, wetting, and handling risks;
- marks, barcodes, PO data, carton sequence, mixed-SKU rules, and warehouse labels.
Connect these inputs to the full schedule in the packaging production and delivery guide and to transport protection in the corrugated shipping box specification page.
RFQ checklist
Send the term with a complete packaging and route brief.
- product type, packaging structure, finished internal and external dimensions, materials, insert, artwork versions, print, finishing, and quantity;
- flat or assembled packing, unit protection, units per carton, estimated carton size and gross weight, total cartons, pallet needs, and shipping marks;
- three-letter rule, exact named place or port, Incoterms® 2020 if agreed, full destination address, transport mode, and required in-hand date;
- party arranging freight and insurance, export and import responsibilities, importer arrangement, duty and tax treatment, document needs, and claims contact;
- origin, freight, destination, storage, examination, appointment, access, redelivery, and unloading charges included or excluded;
- quotation validity, exchange-rate or fuel assumptions, estimated versus fixed items, shipment-data revision point, and approval owner.
For a comparable GloryStarPack quotation, send the destination country and postal code, target date, packaging type, finished size, quantity by artwork version, and preferred trade term if known. We can identify the missing packing and route inputs before pricing.
Official references
Verify the rule before signing the route.
Incoterms® 2020 remains the current ICC edition. Country rules, customs access, tax treatment, carrier charges, and importer requirements can change independently.
- ICC Incoterms® 2020 checklistThe ICC decision flow distinguishes rules for any mode from FOB and CIF for sea or inland waterway transport, and flags the practical limits of EXW and DDP. Review the official ICC checklist.
- ICC EXW and DDP guidanceICC explains why FCA may be more workable than EXW for export clearance and why DAP may be more workable than DDP where a foreign seller cannot complete destination import formalities. Read the ICC EXW/DDP comparison.
- ICC CIF guidanceICC distinguishes seller-paid carriage and insurance to the destination port from the earlier on-board risk transfer under CIF. Read the ICC CIP/CIF comparison.
- U.S. International Trade AdministrationThe U.S. government overview emphasizes agreeing responsibilities, using a precise named place, and understanding that Incoterms are contractual terms rather than government regulations. Review Know Your Incoterms.
This guide is procurement information, not legal, customs, tax, or insurance advice. Confirm the current ICC rules and destination requirements with qualified advisers for the actual transaction.
Packaging Incoterms FAQ
Questions to settle before comparing quotes.
Use these answers to align procurement, finance, logistics, customs, and receiving around the same route.