Two quotes for the same product can differ by thirty per cent and both be correct — because one is EXW and the other is DDP. Before comparing prices from any manufacturer, align the Incoterm. It defines exactly where the seller's cost and risk end and yours begin.
We ship from the Port of Santos, São Paulo, and quote on all Incoterms. What follows is how each one behaves for cosmetics in practice.
The four terms that matter for cosmetics
| Term | Seller covers | Buyer covers | Risk transfers |
|---|---|---|---|
| EXW | Goods packed at the factory | All inland transport, export clearance, freight, insurance, import duty and delivery | At the factory door |
| FOB Santos | Inland transport, export clearance, loading on vessel | Sea freight, insurance, import duty, clearance, inland delivery | When goods are on board |
| CIF | Everything to the destination port, including freight and minimum insurance | Import duty, clearance, inland delivery | On board at Santos, despite paid freight |
| DDP | Everything to your door, including import duty and clearance | Unloading at the final address | On delivery |
Which term to ask for
- First order, no freight forwarder yet: CIF or DDP. Fewer moving parts, and the number you receive is close to your real cost.
- You already have a forwarder and negotiated rates: FOB Santos. You control routing, consolidation and insurance, which usually beats a resold freight rate.
- You are consolidating several Brazilian suppliers: EXW, with your forwarder collecting from each factory into one container.
- You are testing a market with small volumes: DDP by air for a first shipment, then switch to FOB sea freight once the range proves out.
Building a landed cost you can trust
- Ex-works product cost per unit, including packaging and artwork setup.
- Inland transport to Santos and export documentation.
- Ocean or air freight, plus terminal handling at both ends.
- Marine cargo insurance.
- Import duty and VAT/GST at destination, calculated on the correct HS code.
- Customs brokerage and clearance fees.
- Inland delivery to warehouse, and any local relabelling or re-boxing.
- Regulatory costs amortised per unit: safety assessment, notification, registration.
Divide by the units in the shipment and you have a landed cost per unit. Only then does a wholesale price and margin conversation make sense.
Sea or air
| Mode | Ideal para | Trade-off |
|---|---|---|
| Sea LCL | First orders, single-SKU tests | Cheaper than air, but consolidation adds days at both ports |
| Sea FCL | Full ranges, repeat orders, bulk drums | Lowest cost per litre once you can fill a container |
| Air | Samples, launch stock, urgent replenishment | Fast and predictable, but the freight can exceed the goods on liquids |
Cosmetics are liquids and heavy for their value, so air freight economics deteriorate quickly. Most brands use air for samples and launch quantities, then move everything else onto sea.
Documents that travel with the goods
- Commercial invoice and packing list
- Bill of lading or air waybill
- Certificate of origin
- Certificate of free sale
- Certificate of analysis per batch
- MSDS, where the product or transport mode requires it
- Any destination-specific registration or notification reference
Payment terms
Our standard structure is 50% at project start and 50% before shipment, in US dollars or another agreed currency. Aligning payment milestones with the Incoterm matters: under FOB the balance is naturally due at loading, while under DDP the seller carries cost much further, which is reflected in the quoted price.
Which Incoterms do you quote?
All of them. We ship from the Port of Santos and can quote EXW, FOB, CIF or DDP depending on how much of the chain you want to control.
Can you deliver door-to-door in Europe or the Gulf?
Yes, under DDP the quote includes freight, import clearance and duty through to your address. It is the simplest option for a first shipment.
Do you handle export documentation?
Yes. Commercial invoice, packing list, certificate of origin, certificate of free sale and certificate of analysis are prepared with every shipment, plus MSDS and halal documentation where required.
How are payments structured?
Fifty per cent at project start and fifty per cent before shipment, in USD or another agreed currency.
Cree su línea con un fabricante brasileño.
Servicio integral (Full Service) o suministro a granel (Bulk), desde 300 litros por SKU, con documentación de exportación para los mercados de la UE, EE. UU. y el Golfo.
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