Last reviewed: May 2026 — Incoterms decision guide for international buyers of ASIC mining spare parts from China. Builds on our earlier DDP shipping primer with a deeper Incoterms-by-Incoterms breakdown.
When you order ASIC mining spare parts from a Chinese supplier, the three-letter code at the bottom of the proforma invoice — EXW, DAP, DDP, FOB and so on — determines who pays for what, who manages customs, and what risks transfer to whom along the way. Most first-time buyers ignore it. Most experienced procurement teams negotiate it line-by-line. The difference between the two is rarely apparent on the checkout page but very apparent when the courier calls asking for a duty payment, or when a pallet of hashboard testers sits in a bonded warehouse because nobody arranged customs clearance on the buyer's side.
This guide walks the three Incoterms that matter most for mining-parts buyers — EXW, DAP and DDP — with a real cost comparison, a decision matrix per buyer profile, and the LYS coverage map for each. We'll also touch FOB, CIF, CPT and FCA briefly for buyers running larger sea-freight programs.
Incoterms 2020 — A Two-Minute Primer
The International Chamber of Commerce (ICC) publishes Incoterms — short for "International Commercial Terms" — as a standardized set of rules that define which party is responsible for transport, insurance, customs clearance, and the transfer of risk between seller and buyer in international trade. The current revision is Incoterms 2020, which defines 11 terms across two categories:
- Any mode of transport (used for parcels, air freight, and multimodal shipments — relevant to most mining-parts orders): EXW, FCA, CPT, CIP, DAP, DPU, DDP
- Sea and inland waterway only (used for containerized sea freight, bulk cargo): FAS, FOB, CFR, CIF
For an individual repair shop or fleet operator ordering parts via DHL, FedEx, UPS or air consolidated freight, the three terms that come up 95% of the time are EXW, DAP and DDP. For operators running pallet-scale sea freight on regular cadence, FCA and CIF enter the conversation.
EXW (Ex Works) — Buyer Does Everything
Under EXW, the seller's responsibility ends at the seller's own door. You — the buyer — are responsible for collecting the goods from the warehouse, arranging export customs clearance in the seller's country, paying for international transport, paying import duties and taxes at your border, and arranging final delivery to your address. The seller's price is the lowest possible because it includes none of those services.
What this means in practice for a mining-parts order: the seller hands you a packing list and a pickup address in Shenzhen. You arrange a freight forwarder to collect, you handle Chinese export customs (which can require Chinese-language paperwork and a registered Chinese consignee), you book international transport, and you handle import on your side. This works if you already have an established freight forwarder with Chinese export capability and a customs broker on your side. It does not work for first-time buyers or single-parcel orders.
When EXW makes sense: regular bulk sea-freight programs (5+ pallets per order), buyers with an existing China-based freight forwarder, and procurement operations where the buyer wants full transport control for consolidated multi-supplier shipments. Rarely the right choice for single-shipment mining-parts orders.
DAP (Delivered at Place) — Seller Ships, Buyer Clears Customs
Under DAP, the seller arranges transport from the origin warehouse all the way to a named delivery address in your country. The seller pays for export customs and international freight. But — and this is the critical bit — the buyer is still responsible for paying import duties, taxes, and any customs brokerage fees on arrival. The courier (DHL, FedEx, UPS) will hold the shipment at customs until you pay.
What this means in practice for a mining-parts order: your goods arrive at your country's port of entry. Customs assesses duties based on the HS code, declared value and country of origin. The courier sends you an email or SMS with the amount owed. You pay (often via online portal). Once payment clears, the courier delivers. Total time from "arrived in your country" to "in your hands" can be 1-5 business days depending on how fast you respond and how the courier handles brokerage.
The hidden line items on DAP that trip up first-time buyers:
- Duty — based on the HS code for electronic components or computing hardware (HS Chapter 85 for most ASIC parts). Varies by destination country and origin country.
- VAT / GST / sales tax — calculated on declared value plus duty, not just declared value. Often 5–25% on top.
- Courier brokerage fee — DHL, FedEx, UPS typically charge USD 10–25 per shipment just to process customs clearance on your behalf. Not optional unless you arrange your own broker.
- Storage / demurrage — if you don't pay within the courier's deadline (typically 5–10 business days), storage fees start accumulating. After 30 days, the shipment is often returned to sender at the buyer's expense.
When DAP makes sense: destinations outside LYS's DDP coverage (US and EU); buyers with established customs brokers on retainer; buyers who can absorb 15–35% duty variance on top of product price without it breaking the economics.
DDP (Delivered Duty Paid) — Seller Handles Everything End-to-End
Under DDP, the seller is responsible for the entire chain: export customs in China, international transport, import duties and taxes at your border, courier brokerage, and final delivery to your address. The price you pay at checkout is the price you pay, full stop. No surprise calls from the courier, no customs hold, no brokerage line item.
DDP is the most operationally complex term from the seller's perspective — the seller has to know your country's tariff schedule, calculate duties accurately, prepay them through a licensed broker, and absorb the risk if customs reassesses the declared value or HS code. Sellers that offer DDP routinely have established broker relationships and high enough volume to a given destination to make the operational overhead worthwhile.
What this means in practice: you place a USD 200 order, you pay USD 200, the package arrives at your door, nobody asks for anything else. The seller has absorbed the duties, the brokerage, and the customs paperwork into the price you saw at checkout.
When DDP makes sense: first-time buyers, single-shipment buyers, anyone for whom the operational cost of handling customs themselves exceeds the duty premium on the DDP price. For destinations where the seller offers DDP, this is almost always the right choice for individual orders under one pallet.
Real Cost Comparison — A USD 500 Order to the United States
The most concrete way to understand the Incoterm choice is to walk a real example. Consider a USD 500 order of ASIC repair parts (chips, fans, capacitors) shipped from Shenzhen to a repair shop in the United States via air freight. The three Incoterm scenarios:
| Cost Line | EXW | DAP | DDP |
|---|---|---|---|
| Product cost | $500 | $500 | $500 |
| Export customs + Chinese broker | Buyer arranges (~$30–80) | Included by seller | Included by seller |
| International air freight (Shenzhen → US, 2kg parcel) | Buyer arranges (~$45–80) | Included (~$45–80) | Included (~$45–80) |
| US import duty (varies by HS code, current Section 232 + reciprocal tariff burden estimated ~47% on flagship ASIC hardware in 2026) | Buyer pays at customs | Buyer pays at customs | Included by seller |
| Courier brokerage fee | Buyer arranges | Buyer pays courier (~$15–25) | Included by seller |
| Risk of misclassification reassessment | Buyer's risk | Buyer's risk | Seller's risk |
| Total to buyer (typical) | ~$575–660 + buyer's freight margin | ~$560–625 + duty (~$235 at 47%) = ~$795–860 | ~$795–860 all-in, no surprises |
| Operational effort for buyer | High — manage 4 vendors | Medium — respond to courier, pay duty online | Zero — package arrives |
| Cash flow impact | Multi-stage payments | Two-stage (order + customs) | Single stage at checkout |
Note on the tariff figures: US tariff burden on ASIC mining hardware in 2026 sits at roughly 47% combined (Section 232 on metals at 50% + 21.6% reciprocal duty on ASIC miners from Southeast Asia), but the exact rate depends on HS classification and is subject to change. Real cost should be verified at the time of order. EU duty + VAT typically lands in the 20–25% range on similar mining parts categories. LATAM and SE Asia destinations are more variable — see the geography sections below.
The takeaway from this table: for buyers in the US and EU where DDP is available, the DDP price will usually match or beat the DAP all-in cost while removing all the operational overhead. EXW is only economic if you have your own consolidated freight program — which most mining-parts buyers do not.
Decision Matrix — Which Incoterm for Your Buyer Profile
| Buyer Profile | Order Size | Frequency | Recommended Incoterm |
|---|---|---|---|
| Home miner ordering a single repair part | USD 20–200 | One-off | DDP if destination eligible; otherwise DAP |
| Repair shop (US/EU) | USD 200–5,000 | Monthly | DDP — saves operational overhead, no surprises |
| Repair shop (outside US/EU) | USD 200–5,000 | Monthly | DAP with a broker arrangement on your side |
| Fleet operator restocking spares | USD 5,000–50,000 | Quarterly | DDP for US/EU; DAP or CIF for sea freight elsewhere |
| Container-farm builder, multi-pallet conversion kits | USD 50,000+ | Per-project | FOB / CIF sea freight with your own broker |
| Established multi-supplier procurement office in Shenzhen | Any | Continuous | EXW for consolidation flexibility |
When DDP Is NOT the Best Choice
DDP is the default recommendation for individual buyers under one pallet, but there are scenarios where it isn't optimal:
- You have a duty-exempt status — non-profit, research, certain free-zone operators. DDP includes duty by definition; if you're exempt, you're paying for something you wouldn't owe. Negotiate DAP with declared value documentation that supports your exemption claim.
- You're consolidating multiple suppliers into one shipment — DDP from each individual supplier prevents consolidation. EXW or FCA on each supplier with a single freight forwarder handling the consolidation is more efficient at sea-freight scale.
- You're in a bulk-sea-freight country corridor with your own broker — at full-container-load (FCL) scale, the broker margin built into DDP exceeds what you'd pay your own broker. CIF or FOB with your broker is usually cheaper.
- The destination requires special documentation you control — some jurisdictions require importer-of-record documentation that a foreign DDP seller can't provide cleanly. DAP keeps the importer-of-record on your side.
LYS Coverage Map
| Destination | Available Terms | Typical Transit Time | Notes |
|---|---|---|---|
| United States | DDP (primary), DAP available | 8–14 days via DHL/FedEx/UPS | DDP includes Section 232 + reciprocal duties |
| European Union | DDP (primary), DAP available | 8–14 days via DHL/FedEx/UPS | DDP includes VAT + customs duty |
| United Kingdom | DAP (DDP case-by-case) | 8–14 days | UK customs separate post-Brexit; quote per order |
| LATAM (Mexico, Brazil, Colombia, Argentina, Chile, Peru, Venezuela) | DAP, direct freight lanes | 14–25 days air, 35–55 days sea | Local customs varies; DDP available case-by-case on quote |
| Middle East (UAE, Saudi Arabia, Kazakhstan) | DAP, direct freight lanes | 10–18 days air | Free-zone consignees may qualify for simplified entry |
| SE Asia (Indonesia, Malaysia, Thailand, Vietnam, Philippines, Singapore) | DAP, direct freight lanes | 5–12 days air, 18–30 days sea | ASEAN tariff schedules generally favorable |
| Africa, CIS, rest of world | DAP / EXW | Per quote | Discuss freight options before ordering |
For any destination, you can request a bulk quote with your specific volume and shipping address — we will return Incoterm options, transit time estimates and an all-in total cost. Full shipping-policy detail is on our shipping policy page.
Forward Reference: Air vs Sea vs LCL Freight
Incoterms decide who pays for and clears customs on a shipment, but they don't decide the freight mode. That choice — air parcel vs air cargo vs sea LCL vs sea FCL — is a separate decision driven by volume, urgency and cost-per-kilogram. We cover that decision tree in our next post, the Air Freight vs Sea Freight vs LCL Decision Guide, publishing the following week.
Frequently Asked Questions
What is the difference between Incoterms 2010 and Incoterms 2020?
The 2020 revision replaced DAT (Delivered at Terminal) with DPU (Delivered at Place Unloaded), updated insurance levels under CIP, and clarified rules around security-related obligations and own-transport scenarios. The terms relevant to most mining-parts buyers — EXW, FCA, DAP, DDP — are unchanged in substance from 2010. Use the 2020 reference if in doubt; both revisions remain in commercial use.
Why doesn't every Chinese supplier offer DDP?
DDP requires the seller to maintain licensed customs broker relationships in every destination country, prepay duties in the destination's local currency, and absorb the risk of customs reassessment. The operational overhead only becomes worthwhile above a certain volume threshold per destination. Suppliers with concentrated volume to specific countries (such as ours to the US and EU) can offer DDP economically; suppliers with broad but thin coverage typically default to DAP.
Can I refuse to pay duties on a DAP order and have the goods returned?
Yes, but the goods will be returned to the seller at your expense. You will receive a refund for the product cost minus return shipping. The original outbound shipping cost is not refunded. This rarely makes economic sense — it's almost always cheaper to pay the duty and take delivery than to refuse and pay round-trip freight.
Does DDP cover sales tax or only customs duty?
DDP covers all duties, taxes and fees required to import the goods into the destination country — this includes customs duty, VAT (in countries that charge it on imports), GST (where applicable), and any equivalent transaction tax. It does not cover state or local sales tax assessed on the buyer's downstream sale of the goods, only the import-stage tax.
What is the difference between DDP and CIF for sea freight?
CIF (Cost, Insurance and Freight) is a sea-freight-only term that covers the seller's responsibility up to the destination port, including marine insurance — but customs clearance, import duties and final delivery from the port to the buyer's address remain the buyer's responsibility. DDP goes further: it includes customs, duties and final delivery to the buyer's door. For full-container sea freight, CIF is the common term; for air freight or single-pallet shipments, DDP is the common term in markets where it's available.
If I order parts to multiple addresses on one purchase order, can I get DDP for some and DAP for others?
Yes. Each individual shipment carries its own Incoterm. A purchase order can split — for example, DDP for the parts shipping to a US repair shop and DAP for the parts shipping to a fleet site in a country where DDP isn't available. Specify per-line-item Incoterm on the order or in the prior quote conversation.
Does LYS provide Incoterm documentation that my broker / customs needs?
Yes — invoices and packing lists explicitly state the Incoterm applied, the declared value, the HS code we believe applies, and the country of origin. For non-DDP orders where your broker requires additional documentation (origin certificates, MSDS for specific components, etc.), request these at the order stage and we will provide them with the shipment.
The LYS Technical Team is based in Shenzhen, China, where we operate a dedicated ASIC mining hardware repair workshop, parts supply operation, and a freight desk that ships to mining operators in over 40 countries. DDP shipping is the primary lane for USA and European Union customers; direct freight lanes are active to LATAM, Middle East and Southeast Asia on a quoted basis. Every article we publish is written and reviewed by working repair technicians and procurement specialists.
Order With the Right Incoterm for Your Situation
The simple rule: if you're in the US or EU, DDP saves you operational overhead and removes the duty surprise. If you're elsewhere, DAP with your own broker arrangement is the standard; for higher volumes, sea freight under CIF or FCA opens up. For bulk orders or unusual destinations, get a quote before placing the order so the Incoterm and freight mode are explicit upfront.
→ Request a Bulk Quote (Incoterm and freight option selectable)
→ Read the full LYS Shipping Policy
→ Browse Antminer Repair Parts
→ Browse Whatsminer Repair Parts
For Incoterm clarification on a specific order, customs documentation requests, or bulk freight quotes, email contact@lys-sz.com or via WhatsApp.
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