What is Incoterms?
Incoterms are the standard trade terms that say who pays for and is responsible for a shipment at each stage — from the factory door to your door. For a clothing order from Pakistan the ones you will meet are EXW (you collect from our factory), FOB (we deliver to the port in Karachi), CIF (we pay freight and insurance to your port), DAP (delivered to your address, duties yours) and DDP (delivered with duties paid — nothing to pay on arrival).
Why it matters
The same garment price can be $2 per piece apart depending on the term. DDP is the simplest for a brand: one price, delivered, no surprise from customs. FOB is what large importers with their own forwarders ask for.
On our floor
Shipping and duties are quoted with the order, up front, for the term you choose: DDP if you want one delivered price with nothing to pay on arrival, FOB Karachi or EXW Lahore if you run your own freight.
Common questions
- What does DDP mean?
- Delivered duty paid — we handle freight, customs and duties; you receive the goods with nothing to pay.
- What does FOB mean?
- Free on board — we deliver to the port in Karachi and load; freight, insurance and duties from there are yours.
- Which should I ask for?
- DDP if you want one delivered price and no customs bill; FOB if you have your own freight forwarder and import account. Say which on the enquiry and the quote is written to it.
- Are duties high on clothing from Pakistan?
- Zero into the UK and EU under trade preferences; 5% into the Gulf and Australia; 16–32% into the US by fibre; all quoted up front.
Related terms
import duty
Import duty is the tax a destination country charges on goods entering it, as a percentage of their value. For garments made in Pakistan it…
lead time
Lead time is the time from approved sample and artwork to the order leaving the factory — production only, not shipping. Ours is 7–10 days…
carton
An export carton is the corrugated box — usually 5-ply for strength — that finished garments ship in, packed by size and style, sealed, and…
country of origin
Country of origin is the country where the garment was substantially made — for a cut-and-sew garment, where it was cut and sewn. It…
Where this applies
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