EXW, FOB, CIF or DDP: which should a UAE importer choose?
Choose EXW or FOB when you want to pick your own freight forwarder and control cost and timing at the UAE end. Choose CIF or DDP when you want the seller to arrange the freight. If you are unsure, send us the supplier offer and we will quote both.
These four are trade terms, known as Incoterms, published by the International Chamber of Commerce. This page follows the current edition, Incoterms 2020. Each term sets who arranges the freight, who clears customs and where the risk passes from seller to buyer.
When to choose EXW or FOB
On EXW and FOB the buyer books the main freight, so you choose the forwarder. That puts the cost and the timing at the UAE end in your hands.
- You want one forwarder to quote the whole move before you confirm the order
- You buy from several suppliers and want their cargo consolidated
- You want your own team in Dubai to clear and deliver the goods
- You want to see every freight and destination charge before the cargo sails
- On EXW, your forwarder has an office in the supplier country to collect the goods and clear export
When to choose CIF or DDP
On CIF and DDP the seller books the freight and picks the forwarder. You have less to arrange, and you also see less of the cost and the timing.
- You are placing a first trial order and want the supplier to handle the shipping
- Your supplier already ships to the UAE often
- On CIF, you are ready to clear UAE customs and pay the duty and VAT yourself
- On DDP, you want the goods delivered with the import duty settled
- On DDP, the seller has a UAE importer of record in place
Who chooses the freight forwarder under each term?
The side that books the main freight chooses the forwarder. On EXW and FOB that is the buyer. On CIF and DDP it is the seller. A UAE importer who buys on CIF still clears customs in Dubai and pays the duty, but the seller chose the forwarder and the sailing.
Can FOB or CIF be used for air freight?
No. The Incoterms 2020 rules keep FOB and CIF for sea and inland waterway transport. EXW and DDP work with any mode. For air cargo the matching term is Free Carrier, written FCA, where the seller hands the goods to the carrier the buyer names. The International Chamber of Commerce also recommends FCA over FOB for goods in containers.
What does a DDP shipment into the UAE need?
Under DDP the seller must clear UAE import customs and settle the duty. Dubai Customs registers businesses licensed in the UAE or another GCC state and gives each one a business code. A seller without that licence needs an importer of record in the UAE.
The International Chamber of Commerce warns sellers that import formalities in another country can be hard to complete. It suggests Delivered at Place, written DAP, when the seller cannot complete them. Under DAP the buyer clears import customs.
Where Gxpress fits
If you buy on EXW or FOB, Gxpress can be the forwarder you name. Our offices in India and China check the papers at origin, and our Dubai team clears and delivers under one file and one invoice.
If you sell into the UAE on DDP, Gxpress can act as importer of record for the shipment. We hold our own customs broker registration with Dubai Customs.
Checked against International Chamber of Commerce guidance on the Incoterms 2020 rules and the Dubai Customs customer guide on 6 October 2026.
