Incoterms: Who Pays Freight & Duty
The incoterm on your proforma invoice decides where your responsibility starts and stops. For cotton knitwear imports the four buyers meet most are EXW, FOB, CIF and DDP — each shifts cost and risk differently.
| Term | Freight | Duty / Customs | Best For |
|---|---|---|---|
| EXW (Ex Works) | Buyer (from factory door) | Buyer handles all | Experienced importers |
| FOB (Free On Board) | Seller to port of load | Buyer from export | Most common for apparel |
| CIF (Cost, Ins, Freight) | Seller to destination port | Buyer at arrival | Hands-off shipping |
| DDP (Delivered Duty Paid) | Seller to your door | Seller pays duty | Lowest buyer risk |
Recommendation: Most first-time cotton knitwear buyers choose FOB (you control freight forwarder and duty) or DDP (factory handles everything, including import duty). Avoid EXW unless you already run your own Chinese logistics — the factory hands you goods at the door and your responsibility starts there.
Documents Customs Expects
- Commercial invoice & packing list — itemized by style, color, size, quantity and value. The backbone of every clearance.
- HS / HTS code — apparel falls under Chapter 61 (knitted) or 62 (woven). Cotton Knitwear tees ~6109, hoodies ~6110. Wrong code = delay or penalty.
- Certificate of origin / FTA form — if your country has a free-trade agreement with China, the form cuts or zeroes your duty. A qualified exporter issues it correctly.
- Bill of lading (sea) or air waybill — the carrier's receipt that proves shipment and title transfer.
HS Codes: Cotton Knitwear Basics
Apparel splits by construction, not by use. Knitted garments sit in Chapter 61; woven in Chapter 62. Within Chapter 61, the sub-code tracks the garment type and whether it is for men, women or unisex. Getting this right is the single biggest clearance risk for new importers.
| Garment | HS Chapter | Typical Code |
|---|---|---|
| Knit T-shirt | 61 | 6109.10 |
| Knit hoodie / sweatshirt | 61 | 6110.30 |
| Knit trousers / joggers | 61 | 6103.49 |
How a Qualified Exporter Protects Your Shipment
- Holds import/export registration and VAT fapiao capability — without these your goods can stall at export or you lose refund eligibility.
- Issues correct HS codes and certificate of origin on every shipment — the documents match the physical goods, so customs clears first time.
- Books a reliable freight forwarder and gives you a tracking timeline from factory to port to door.
- For DDP terms, pays import duty upfront and hands you a landed-cost number you can trust — no surprise bill at delivery.
Bottom line: A supplier without export qualification is a hidden risk — even a perfect garment can sit in a port if the paperwork is wrong. Ask for the unified social credit code and export scope before you commit; a qualified exporter treats documentation as part of the product.
FAQ
Which Incoterm should I choose for apparel imports?
Four cover most cotton knitwear imports: EXW (you collect at the factory), FOB (we deliver to the port, you pay freight and duty), CIF (we cover freight and insurance to your port), and DDP (we pay import duty and hand you a landed-cost number). Choose by how much of the logistics chain you want to own.
What documents does customs require for garment shipments?
Four core documents: a commercial invoice and packing list itemised by style, colour, size, quantity and value; the HS/HTS code; a certificate of origin or FTA form; and the bill of lading or air waybill. The documents must match the physical goods exactly, which is how clearance happens on the first attempt.
What HS code applies to cotton knitwear?
Apparel splits by construction, not by use. Knitted garments sit in Chapter 61 and woven in Chapter 62. Within Chapter 61, knitted T-shirts fall around 6109 and hoodies around 6110. The sub-code tracks garment type and fibre content. A wrong code means delay or penalty.
Do you handle the export documentation?
Yes. As a qualified exporter we hold import/export registration and VAT fapiao capability, issue correct HS codes and certificates of origin on every shipment, book the freight forwarder, and for DDP terms pay import duty upfront so you receive a landed-cost figure with no surprise bill at delivery.