For most small and mid-size jewelry brands, DDP (Delivered Duty Paid) is the cheapest Incoterm in practice: the supplier's price includes freight, import duty and customs clearance, so the number you agree is the number you pay. FOB looks cheaper on the quote but leaves freight, duty and brokerage to you, and EXW leaves you handling export clearance in China as well. This guide compares what each term includes and when to switch.
Part of our Jewelry Import Guides by Country
Two suppliers quote you the same silver jewelry order. One says $4,200 FOB Shenzhen. The other says $4,900 DDP to your warehouse in Ohio. Most buyers instinctively pick the cheaper number — and most of those buyers end up paying more.
Incoterms are the three-letter codes that decide who pays for what, and where responsibility transfers from the factory to you. For a category like sterling silver jewelry — high value, low weight, heavily documented at customs — the Incoterm you agree to often changes your true landed cost by 15% or more. Deechy Jewelry Manufacturing & Design offers DDP to most countries, and this guide explains why it is often the better choice for smaller importers, along with what each term actually obligates you to do.
The Three Terms That Matter for Jewelry
There are eleven Incoterms in the 2020 edition. For silver jewelry sourcing from China you will realistically only ever encounter three: EXW, FOB, and DDP. Occasionally CIF appears for sea freight, but jewelry almost always ships by air or express courier because the value-to-weight ratio makes sea freight pointless.
EXW (Ex Works)
The factory makes the goods available at its own door. Everything after that is yours: domestic trucking within China, export clearance, air freight, import clearance, duties, and final delivery. EXW produces the lowest headline price and the highest number of ways for a first-time importer to get stuck.
The practical problem with EXW on jewelry is export clearance. A Chinese factory quoting EXW is not filing the export declaration for you, which means you need a Chinese forwarder willing to act as the exporter of record on your behalf. Small buyers rarely have that relationship. We do not recommend EXW to any brand placing its first several orders.
FOB (Free On Board)
The factory delivers the goods, cleared for export, onto the carrier at the named port or airport. Your responsibility begins at that point. FOB is the default for most manufacturing categories and it is a reasonable term if you already work with a freight forwarder and have a customs broker on your side.
What FOB excludes is the part that surprises people: international freight, insurance, import duty, customs brokerage fees, and last-mile delivery. A $4,200 FOB quote on a sterling silver jewelry order is genuinely $4,200 to the factory — and then several hundred to a few thousand dollars more before the box reaches your shelf.
DDP (Delivered Duty Paid)
The seller carries everything: production, export clearance, freight, insurance, import clearance, duty, and delivery to your stated address. The number you agree to is the number you pay. DDP places maximum obligation on the manufacturer, which is precisely why not every factory offers it.
Who Pays What: Side by Side
| Cost element | EXW | FOB | DDP |
|---|---|---|---|
| Production | Seller | Seller | Seller |
| Export packing | Seller | Seller | Seller |
| Inland transport in China | Buyer | Seller | Seller |
| Export customs clearance | Buyer | Seller | Seller |
| International freight | Buyer | Buyer | Seller |
| Cargo insurance | Buyer | Buyer | Seller |
| Import clearance | Buyer | Buyer | Seller |
| Import duty and taxes | Buyer | Buyer | Seller |
| Delivery to your door | Buyer | Buyer | Seller |
Running the Real Numbers
Here is the comparison that opened this article, worked through properly. Assume 500 pieces of sterling silver jewelry, total shipment weight around 6 kg, destination United States.
| Line item | FOB scenario | DDP scenario |
|---|---|---|
| Factory price | $4,200 | Included |
| Air freight, 6 kg | $180–$320 | Included |
| Cargo insurance | $40–$60 | Included |
| Customs brokerage fee | $75–$150 | Included |
| Import duty | Varies by tariff stack | Included |
| Merchandise processing fee | $32 minimum | Included |
| Last-mile delivery | $25–$60 | Included |
| You actually pay | $4,552+ plus duty | $4,900 flat |
Once duty is layered on top, the FOB route typically lands above the DDP quote — and that is before counting the hours you spend coordinating a forwarder, chasing a broker, and answering customs queries about metal content.
Why DDP Matters More for Silver Jewelry Than for Most Categories
Three characteristics of this product category make DDP disproportionately valuable.
Classification is not obvious. Sterling silver jewelry, silver jewelry with imitation stones, silver jewelry with natural gemstones, and silver findings all fall under different tariff lines. A misclassification can mean the wrong duty rate, a delayed shipment, or a penalty. A manufacturer that ships this product every week knows the correct lines; a general forwarder often does not.
Metal content gets scrutinised. Customs authorities care whether a piece is solid sterling, plated base metal, or silver clad with gold. Declarations need to match the physical goods and the supporting documentation. Before you order, ask your supplier what metal-content documentation, such as an XRF assay report, it can provide.
Value density draws attention. A 6 kg parcel worth $5,000 attracts more inspection than a 60 kg parcel worth the same amount. Clean, consistent paperwork is what keeps small high-value shipments moving.
The Question to Ask Before Accepting Any DDP Quote
DDP is only as good as the party standing behind it. Some suppliers quote DDP and then under-declare shipment value to reduce their own duty exposure. That is not a discount — it is a compliance risk that sits with you as the importer of record, and it can result in seizure, penalties, and a permanent flag on your import history.
Ask your supplier directly: will the commercial invoice reflect the full transaction value, and will I receive a copy of the entry documentation? A manufacturer that answers yes without hesitation is one you can build a business on. One that gets vague about declared value is telling you something important.
To see DDP pricing on a real order, browse necklaces or the full catalog, for example this zirconia key pendant, and the shipping options appear at checkout. The glossary defines DDP, FOB and EXW, and our guide to importing silver jewelry into the US covers duty and paperwork.
Frequently Asked Questions
Is DDP always more expensive than FOB for silver jewelry?
The headline number is higher, but the total landed cost is usually comparable or lower. FOB excludes freight, insurance, brokerage, duty, processing fees, and delivery. Once those are added, most small and mid-sized silver jewelry orders cost more under FOB than under a competitive DDP quote.
Which Incoterm should a first-time silver jewelry importer choose?
DDP. It removes the need to appoint a forwarder, engage a customs broker, or classify goods yourself. Move to FOB later, once your volume justifies negotiating your own freight rates and you have an established broker relationship.
Does DDP mean the manufacturer is the importer of record?
Not necessarily. In most DDP arrangements the seller arranges and pays for clearance, but the buyer may still be named importer of record depending on the destination country and the structure used. Confirm this in writing before shipment, because the importer of record carries legal responsibility for the accuracy of the declaration.
Can I switch from DDP to FOB on later orders?
Yes. Incoterms are agreed per order, not locked to an account. Many brands start on DDP for their first two or three orders and move to FOB once monthly volume makes their own freight contract worthwhile.
Does Deechy ship DDP?
Yes. DDP is available to most countries, so duties and customs clearance are included in the delivered price and there is nothing further to pay on arrival. Shipping on catalog orders is calculated at checkout.
Part of our Jewelry Import Guides by Country
