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Sourcing Knowledge Center / Ask the Sourcing Experts / Do I need a third party logistics provider in China, as well as in India?
Full Question
Do I need a third party logistics (3PL) provider in China as well as in India?
Answer
That depends on the Incoterms of your order. For example, if you are buying DDP (Delivered Duty paid), then the seller will organize the logistics. If the buyer is purchasing under FOB (Freight on Board) or CIF (Cost Insurance and Freight) terms, then in most cases the buyer will contract at third party logistics (3PL) provider to help with the delivery and inbound custom's clearance.
In my experience, assuming you are buying "FOB China port" (which is the most common Incoterm for China sourcing), the best option would be to find a 3PL that is experienced clearing customs in your destination port, who ideally also has experience with shipments out of China of similar product classifications to what you are buying.
Here is a link to an answer from our Ask the Experts page that explains how to find and manage a 3PL:
If you are buying ExW (Ex Works), then you take title to the goods at the factory door in China. This option is not recommended for most small buyers because it is very complex for a foreigner without operations in China to clear outbound China customs and arrange taxes. See here for more information on the headaches of buying ExW. But if you are buying ExW, then I would suggest you find a China based 3PL or, better yet, a trading company with an export license to help you get the goods out of China and delivered to India.
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