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Shipping Terms for Apparel Buyers: EXW, FOB and DAP Explained

· FASA GROUP Buyer Guides · 2 min read

EXW, FOB and DAP describe different delivery arrangements under Incoterms. Record the selected rule, named place or port and edition in the agreement. ICC explains these rules as allocating delivery obligations, costs and risk; they do not replace the full sales contract or settle every commercial issue.

In this guide

Understand the basic distinction

This is a starting comparison, not a complete statement of either party's obligations. Consult the official rules and the people arranging the shipment for the actual transaction.

Rule Basic delivery context
EXW Goods placed at the buyer's disposal at the named premises/place
FOB Sea or inland-waterway delivery on board at the named shipment port
DAP Delivery at the named destination, ready for unloading; import clearance rests with the buyer

Ask for a quotation with an explicit basis

  • Which exact named place or port is included?
  • Which Incoterms edition is intended?
  • What transport arrangement is proposed for these goods?
  • Which quoted charges and services are included or excluded?
  • Who provides the required information and documents?
  • What assumptions need confirmation with the logistics provider?

Keep your order comparison consistent

Create a comparison sheet using the same garment specification, quantities and destination objective. Record open logistics questions separately from garment costs, rather than treating two differently described quotations as equivalent. Ask for a revised written offer if the agreed delivery basis changes.

Maintain a named contact and dated decision record for the shipment arrangements. Your planning sheet can list questions to resolve, but it should not silently fill gaps in the contract or assume that a preferred arrangement has already been accepted.

Mistakes to avoid

  • Leaving the named place blank.
  • Using FOB as a generic label for any transport mode.
  • Assuming a short shipping label describes the entire sales agreement.

Prepare the next decision

Request an order-specific written delivery basis and resolve the open responsibilities with the supplier and appropriate logistics advisers before selecting the arrangement.

For catalogue context, explore the Apparel collection. Discuss your development requirements through the manufacturing and sampling process.

Sources and further reading

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