Import trade terms, in plain English
FOB, DDP, AQL, HTS, ISF. Each acronym decides who pays, who carries the risk and what CBP expects. This is the working reference our team uses on live China programs.
Incoterms
6FOB
The seller loads the goods onto the vessel at the named port of shipment; risk and cost pass to you at that point.
EXW
The seller only makes goods available at the factory; you carry trucking, export clearance and everything after.
CIF
The seller pays ocean freight and minimum insurance, but risk still transfers when the cargo is loaded.
DDP
The seller delivers to your warehouse with duties and tariffs paid — the heaviest obligation on the supplier.
DAP
The seller delivers to your named address, but US customs entry and duties remain yours.
FCA
Risk transfers when the seller hands cargo to the carrier you nominate — works for ocean, air and truck.
Sourcing
3MOQ
The smallest quantity a factory will run; below it you get no quote or a setup surcharge.
OEM / ODM
OEM builds to your design and your tooling; ODM sells you an existing design the factory already owns.
Tooling Fee
One-time mold cost for a custom part, typically USD 1,500–30,000+ depending on complexity.
Quality Control
3PSI
Final AQL sampling inspection once production is 80–100% complete and packed, before the container closes.
DUPRO
Mid-production check at roughly 20–60% completion, so defects are caught before the whole run is built.
AQL
The statistical sampling standard that defines the maximum defect rate a lot can carry and still be accepted.
Payment
2Logistics
5FCL
The container holds only your cargo: lower unit cost, less handling damage, simpler CBP entry.
LCL
Shared container space billed per CBM, suited to roughly 1–15 CBM shipments.
ETA
The projected arrival at destination port — an estimate, not a commitment.
ETD
The projected sailing date from the load port; factory lead times are usually planned backward from it.
B/L
Transport contract, cargo receipt and document of title — the paper that controls release of your cargo.
Customs
3HTS Code
The classification number that sets your duty rate, Section 301 exposure and admissibility.
CO
Issued in the export country to evidence origin, used for duty treatment and trade-remedy questions.
CI
The core entry document that establishes customs value, duty owed and trade statistics.
Not sure what your contract actually says?
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