Incoterms (International Commercial Terms) are standardized three-letter codes published by the International Chamber of Commerce that define the split of costs, risks, and responsibilities between buyer and seller in a cross-border transaction. Every purchase order should specify an Incoterm — and "the factory ships it" is not an Incoterm. For knitwear imports from Turkey to the United States, three terms dominate: FOB, CIF, and DDP. Each has a different risk and cost profile, and the right choice depends on your experience level and your need for control.

The Three Terms You'll Encounter

FOB

Free on Board — Port of Shipment

Risk transfers to the buyer when the cargo clears the ship's rail at the Turkish port of loading (Mersin or Istanbul). The seller (factory) is responsible for inland trucking to the port and Turkish export clearance. From that point, the buyer arranges and pays for ocean freight, marine insurance, and US import costs. FOB is the most commonly used term in apparel sourcing.

CIF

Cost, Insurance, and Freight — Port of Destination

The seller arranges and pays for ocean freight and insurance to the named US port. Risk still transfers at the port of loading (same as FOB), even though the seller pays freight — which is counterintuitive. The buyer handles US import duties and customs clearance from the destination port. CIF sounds convenient but reduces the buyer's control over the freight booking.

DDP

Delivered Duty Paid — Named Place

The seller delivers to the buyer's warehouse with all costs paid — freight, insurance, and US duties. Sounds ideal for the buyer, but: the seller controls the freight forwarder, the customs broker, and the duty classification. The importer of record is typically still the buyer (legally) but has minimal visibility into how the entry was filed. DDP is convenient but expensive and can create compliance gaps.

EXW

Ex Works — Factory

The buyer takes responsibility from the factory gate — including Turkish export customs. Maximum control for the buyer, maximum complexity. Rarely practical for a US brand's first overseas order; requires either a Turkish freight forwarder or a consolidation agent to handle local export logistics.

The Case for FOB: Start Here

For most US brands sourcing knitwear from Turkey for the first time, FOB is the recommended starting point, for several reasons:

Knitwear export documentation — Turkey to USA, Kiwi Giyim — Packing and export documentation: commercial invoice, packing list, and certificate of origin prepared for US import

You control your freight forwarder

Under FOB, you book the ocean freight through your own forwarder. This means you choose the carrier, the routing, and the US port of entry — which matters for transit time and port congestion. Your forwarder also files the ISF on your behalf, with the documentation you provide.

You control your customs broker

Under FOB or EXW, you choose the customs broker who classifies your goods and files your entry. Under DDP, the factory's logistics partner may file on your behalf — but they don't know your compliance history, your retail buyer's documentation requirements, or whether the HTS code they used is the one your broker would choose.

Duty is assessed on FOB value, not CIF

US Customs assesses duty on the transaction value (essentially the FOB price). Under CIF terms, the declared value includes freight and insurance — which technically increases the dutiable value. Under FOB, freight is excluded. The difference is often small but meaningful on large orders.

Competitive freight booking

When you control the freight booking, you can get quotes from multiple forwarders and optimize for cost or speed. A factory's default forwarder may not offer the best rates on the Turkey–US corridor.

When DDP Makes Sense — and When It Doesn't

DDP can make sense when: you're ordering a very small quantity (under $5,000), it's a sample shipment, or you're testing a new product without setting up a full import relationship yet. The convenience premium may be worth it for simplicity.

DDP creates problems when: the factory's broker files the wrong HTS code (you're liable for the underpaid duty at liquidation), the factory's forwarder uses a carrier with poor tracking visibility, or the factory's logistics partner is not familiar with US compliance documentation requirements. At scale, DDP can also mean the factory marks up logistics by 10–20% to cover their coordination cost — you're paying for a service you can provide more cheaply and more accurately yourself.

Landed Cost: A Simple Comparison

Assume a 500-unit sweater order, $35 FOB per unit, shipped from Mersin to the Port of New York in an LCL container:

FOB

You Pay After Loading

Factory price: $17,500 (FOB). You pay: ocean freight ~$600–900, insurance ~$50, US customs entry ~$200, duty (16.5% cotton) ~$2,888. Landed cost ~$21,200–21,500. Full visibility and control.

CIF

Factory Includes Freight+Insurance

Factory quotes CIF price (includes freight + insurance): ~$18,200. You still pay US customs entry + duty (on CIF value now, slightly higher). Total similar, but less visibility into the freight cost component.

DDP

Factory Quotes All-In

Factory quotes DDP to your warehouse: ~$21,000–22,500. Convenient but you don't know how duties were classified, and the entry is out of your control. Premium for convenience; compliance risk shifts to you at liquidation.

Note

These Are Illustrative Estimates

Actual freight rates, duty rates, and entry costs vary by port, season, and shipment specifics. Always get quotes from your forwarder and confirm duty rates with your customs broker before finalizing a landed cost model.

Incoterms for Knitwear Imports: FOB, CIF and DDP Explained