Key Incoterms for Lingerie Importers to Know

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If you're importing lingerie from overseas—especially from hubs like China, India, or Turkey—understanding Incoterms isn’t just smart, it’s essential. These three-letter codes dictate who pays what, when risk transfers, and where responsibility ends. Get it wrong, and you could be stuck with surprise fees, delayed shipments, or even lost inventory.

As a supply chain consultant who’s helped over 50 fashion brands streamline their import process, I’ve seen too many newcomers trip up on terms like FOB and DDP. Let’s break down the top four Incoterms every lingerie importer should know—with real numbers and practical advice.

Why Incoterms Matter for Lingerie Imports

Lingerie is often shipped in small volumes but high value, making cost control and shipment security critical. A single container might carry $80,000+ worth of delicate bras and panties. Misunderstanding your obligations under, say, CIF vs DDP, can lead to thousands in unplanned customs duties or logistics headaches.

The Top 4 Incoterms for Lingerie Importers

  1. FOB (Free On Board) – You take ownership once goods are loaded onto the vessel. The supplier covers costs to get items to the port and loaded. After that? It’s on you.
  2. CIF (Cost, Insurance & Freight) – Similar to FOB, but the seller also pays for marine insurance and freight to the destination port. Great for beginners who want more predictability.
  3. EXW (Ex Works) – The seller makes the goods available at their factory. Everything else—pickup, export clearance, shipping—is your problem. Riskiest, but potentially cheapest if you have a solid logistics partner.
  4. DDP (Delivered Duty Paid) – The seller handles everything: shipping, customs clearance, duties, and final delivery to your warehouse. Most expensive upfront, but zero hassle.

Real-World Cost Comparison (Per 20ft Container)

Incoterm Supplier Quote Buyer Additional Costs Total Estimated Cost
EXW $18,000 $3,200 (freight, insurance, duties) $21,200
FOB $18,500 $2,700 (freight, insurance, duties) $21,200
CIF $19,000 $1,200 (duties only) $20,200
DDP $21,500 $0 $21,500

As you can see, CIF often delivers the best balance of control and cost predictability. But if you're scaling fast and hate operational friction, DDP might be worth the premium.

Pro tip: Always confirm whether the quote includes destination handling fees—some DDP quotes exclude these, leading to last-minute charges.

In short: Know your Incoterms, match them to your business model, and never assume 'free shipping' means no responsibilities.