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Incoterms 2020 for Solar Imports: FOB vs CIF vs DDP Explained

Complete guide to Incoterms 2020 for solar panel imports from China — FOB, FCA, CIF, CIP, DAP, DDP. Who pays what, insurance responsibility, and which term to use for your project.

Chinese.Solar Editorial2026-05-1214 min read
CHINA

Choosing the wrong Incoterm on a solar order can add 4-8% to landed cost or leave you uninsured for a $500k container. Here's the practical guide for solar buyers.

Most common for solar

CIF

China → destination port

Insurance level required

110%

of CIF value

Risk transfer under FOB

on-board vessel

at Chinese port

Solar-specific recommendations

  • First-time importers: DDP (Chinese supplier arranges everything to your door)
  • Established importers: CIF (you control port + inland)
  • Large volume (>10 containers): FOB (you contract freight direct with Maersk / Hapag / ONE)
  • US buyers post-Section 201: DDP is safer as supplier absorbs tariff volatility
Never accept EXW

EXW leaves you responsible for Chinese export clearance — which you legally cannot do as a foreign entity without a Chinese subsidiary. Insist on FCA at minimum.

Frequently asked questions

QDoes CIF include destination port THC?

No — CIF ends at the ship's rail at destination port. Terminal handling charges (THC), customs clearance and inland transport are the buyer's cost.

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