What the process actually looks like
- Find and verify the supplier — a trading company and a factory quote very differently
- Agree the Incoterm, which decides where their job ends and your cost begins
- Order a sample before the production run, always
- Agree payment terms: a deposit with the balance against the Bill of Lading copy is the common structure
- Book the freight, and give the supplier the forwarder's details at origin
- Clear customs in Chile and take delivery
The Incoterm is the decision that costs the most
An FOB price and an EXW price for the same goods are not comparable, and neither is comparable to a DDP offer. Under EXW you are responsible from the factory gate, including Chinese export clearance, which you cannot do yourself as a foreign buyer.
FOB is what most Chilean importers should ask for: the supplier delivers the goods loaded at the Chinese port with export clearance done, and your forwarder takes over from there. You see the real freight cost rather than having it buried in the product price.
Why DDP offers are usually a trap
A supplier offering DDP — delivered, duties paid, to your door in Chile — is quoting a logistics service they do not control, through an agent you have not chosen, with customs declared by someone with no relationship to you.
It looks simpler and it sometimes is cheaper. What you lose is visibility of what was declared to Customs in your name, which is a liability that stays with you for years.
The real landed cost
- The product price under the agreed Incoterm
- Origin charges and export clearance in China (included if you buy FOB)
- Ocean or air freight plus surcharges
- Destination charges at the Chilean port
- Duty — usually 0% from China with a valid certificate of origin — plus 19% VAT on CIF plus duty
- Customs clearance and inland trucking to your warehouse
Mistakes that cost first-time importers the most
- Not asking for the certificate of origin, and paying duty that the trade agreement would have waived
- Comparing an FOB quote against a DDP quote and concluding the cheaper one is cheaper
- Trusting the supplier's weight and dimensions — remeasurement at origin is the most common quote change
- Booking too close to Chinese New Year, when factories close and space disappears
- Skipping the pre-shipment inspection on a first order from a new supplier
Frequently asked questions
Which Incoterm should I buy on from China?
FOB suits most Chilean importers: the supplier delivers the goods loaded at the Chinese port with export clearance done, and your forwarder takes over. You see the real freight cost instead of having it buried in the product price.
What does it cost to import a container from China?
It depends on the lane, the season and the container type, and the freight is only one of six cost blocks. Ask us for a landed-cost quote rather than a freight rate — that is the number you can actually budget against.
Do I pay duty importing from China?
Most tariff lines are at 0% under the Chile–China free trade agreement, provided the shipment travels with a valid certificate of origin. VAT at 19% still applies on the CIF value plus any duty.
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