Incoterms for EV Import: EXW, FOB, CIF and DDP
The Incoterm decides who pays and who bears risk at each stage between the factory and your door. FOB (you arrange main freight from the port) is the most common baseline for EV imports; CIF adds sea freight and insurance to the seller's scope; DDP puts almost everything on the seller; EXW puts almost everything on you. STARGO quotes an FOB reference and can arrange other terms on request.
Reviewed by Ainne Zhang (Operations Director) · Last verified 2026-07-26
Key facts
- FOB is the common baseline — the seller clears export and loads; you arrange main freight and import
- CIF adds sea freight and insurance to the seller; you still handle import clearance and duties
- DDP puts freight, insurance and import duties on the seller — simplest for you, highest quoted price
- EXW means you collect from the factory and handle everything, including export clearance
- Lithium batteries are dangerous goods (Class 9) — factor UN38.3, packaging and DG surcharges into freight
Why the Incoterm changes your landed cost
An FOB price and a DDP price for the same electric scooter are not comparable, because they include different things. Incoterms (the ICC's standard trade terms) define exactly where the seller's responsibility ends and yours begins — for cost and, separately, for risk. Comparing quotes without checking the term is the most common landed-cost mistake importers make. Always confirm the Incoterm alongside the unit price on the proforma invoice, and compare like with like.
EXW, FOB, CIF, DDP side by side
| Responsibility | EXW | FOB | CIF | DDP |
|---|---|---|---|---|
| Export clearance | Buyer | Seller | Seller | Seller |
| Main sea freight | Buyer | Buyer | Seller | Seller |
| Insurance | Buyer | Buyer | Seller | Seller |
| Import duties & clearance | Buyer | Buyer | Buyer | Seller |
| Risk transfers at | Factory gate | Port (on board) | Port (on board) | Buyer's door |
Which term should you choose?
The right term depends on your experience and your control over local logistics. FOB is the usual starting point for EV imports: the factory clears export and loads the goods, and you (or your freight forwarder) control the sea freight and import — which usually gives the best total cost once you have a reliable forwarder. CIF suits a buyer who wants the seller to arrange sea freight and insurance but still clears import locally. DDP is the simplest for a new importer because the seller handles freight and import duties to your door, but it carries the highest quoted price and less cost transparency. EXW gives you the most control and the most work, including export clearance in China, so it mainly suits experienced buyers with a China-side agent.
Lithium-battery freight notes
Electric vehicles with lithium batteries ship as dangerous goods (UN Class 9), which affects freight regardless of the Incoterm. The shipment needs UN38.3 test reports and MSDS, compliant packaging, and often a dangerous-goods surcharge on sea freight. Vehicles with lead-acid batteries follow different, usually simpler, rules. Because these costs sit inside CIF and DDP quotes but outside FOB, confirm how lithium DG handling is priced when you compare terms. STARGO provides UN38.3 and MSDS documents for lithium shipments and quotes an FOB reference within 24 hours by model, battery and quantity.
Frequently asked questions
What is the difference between FOB and CIF for electric scooter imports?
Under FOB, the seller clears export and loads the goods at the port, and you arrange and pay the sea freight and insurance. Under CIF, the seller also arranges and pays sea freight and insurance to the destination port; you still handle import clearance and duties. CIF is simpler; FOB usually gives better cost control if you have a reliable freight forwarder.
Is DDP a good option for a first-time EV importer?
DDP is the simplest because the seller handles freight, insurance and import duties to your door, so it can suit a first order where you lack local logistics. The trade-offs are a higher quoted price and less cost transparency, and some countries restrict DDP for duty and tax reasons. Confirm feasibility for your market before choosing it.
What Incoterm does STARGO quote?
STARGO provides an FOB reference quotation within 24 hours based on model, battery configuration and quantity, and can arrange other terms such as CIF or DDP on request. The FOB reference range for its scooters is USD 520–780 per unit depending on motor and battery; other terms add freight, insurance or duties on top.
Who pays import duties when buying EVs from China?
Under EXW, FOB and CIF the buyer pays import duties and clears customs in the destination country; only under DDP does the seller cover import duties to your door. Duty rates depend on the HS code for the vehicle class in your country — confirm both with your local customs broker before ordering.
Do lithium batteries change the shipping terms?
They change the freight, not the Incoterm itself. Lithium vehicles ship as dangerous goods (Class 9), needing UN38.3 reports, MSDS, compliant packaging and often a DG surcharge. These costs are inside CIF and DDP quotes but outside FOB, so account for them when comparing terms. STARGO supplies UN38.3 and MSDS for lithium shipments.
Which Incoterm gives the lowest total cost?
There is no universal answer — it depends on how competitively you can arrange freight and clearance versus the seller. Experienced importers with a good forwarder often get the lowest landed cost on FOB; a new importer without local logistics may find DDP's higher price worth the simplicity. Compare full landed cost, not just the unit price, across terms.
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