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
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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