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Import guides

Incoterms explained for China imports: EXW, FOB, CIF and DDP

The Incoterm on your supplier's quote decides who pays for and controls each stage of the journey. Picking the wrong one is a common source of hidden costs.

The four terms you will see most

  • EXW (Ex Works): you take the goods at the factory door and pay everything after that
  • FOB (Free on Board): the supplier delivers to the ship at the Chinese port; you pay sea freight onward
  • CIF (Cost, Insurance and Freight): the supplier pays freight and insurance to the Saudi port; you pay everything at arrival
  • DDP (Delivered Duty Paid): the supplier promises delivery with duty paid

What we recommend

FOB is usually the best balance: the supplier handles Chinese export, and we control the freight, certificates and Saudi clearance. EXW also works well when we collect from the factory.

Why CIF and DDP can cost more

With CIF the supplier picks the cheapest carrier and the destination charges can be high. With DDP the supplier often lacks Saudi registration and certificates, so goods get stuck. Controlling the freight yourself, through us, keeps costs visible.

How a shipment moves with Silk Arabia

  1. Specification & sourcing You share the requirement. We shortlist suppliers and confirm samples and prices.
  2. Order & quality check We order on your behalf, inspect before loading and photograph every stage.
  3. Certification SABER product and shipment certificates, SASO/SFDA and ministry approvals prepared in advance.
  4. Sea or air freight Booked on the best-value sailing or flight and tracked until it arrives.
  5. Customs clearance Declaration, duty and VAT handled by our licensed clearance team at the port.
  6. Delivery to your warehouse Trucked anywhere in Saudi Arabia, the GCC or Iraq, with proof of delivery.

FAQ

Which Incoterm should I ask my supplier for?

Ask for FOB at the nearest Chinese port, or EXW if the factory is inland. We take it from there.

Does the Incoterm change customs duty?

Duty is calculated on the CIF value in Saudi Arabia whatever term you buy on, so freight is always added.

Have a product in mind? Send the specification today.

We reply with supplier options and a complete door-to-door cost, usually within 2 working days.