Seller changed incotems
Buyer asks why an Alibaba.com seller wants to change shipping terms from DAP to CFR despite promising the same delivery experience.
I placed a second order with a seller on alibaba.
The first order they shipped express-DAP and assured I would not have to pay import taxes. They were right.
Now the second larger order they initially accepted express-DAP, but a week later, just before shipping the want to change it to Air Cargo CFR.
Now, I know the difference between DAP and CFR, but they tell me:
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"Hi, we planned to update the shipping address to forwarder warehouse yesterday but cancel this change. I adjusted the trade term, while goods will still be delivered to your door with double clearance and tax included. Please approve this revision on your order, thanks."
"Yes, last time we chose expedited shipping, but this time we are declaring customs in the name of the company and doing self-export, so we need your assistance"
"The modification is only required for the export customs declaration documents on the Chinese side and does not affect your actual delivery process. All procedures are consistent with the previous order, so please rest assured"
Had anyone heard of this before? What are they telling me and if everything is the same, why do they suggest changing to CFR on alibaba?
If they handle customs declaration on your own, they can get a 13% tax rebate, which is common given your substantial order value.
i would not agree to such terms
not on a second order
you won’t have much of anything to claim if they send you the wrong goods either as they’ll deny it occurred after it arrived in port
and two orders is not enough to build trust , it’s enough for them to bait/switch which imo this is
For many smaller China shipments, especially lower-value orders (say below $10K USD), the supplier may not export using their own company export licence. Sometimes the forwarder or a trading/export company handles the export declaration instead.
What they are probably saying is that this time they want to do a formal self-export under their own company name, likely so the paperwork matches their tax/export rebate process in China. Many small orders don't have a proper paper trail and some suppliers simply don't add them to the accounting books.
That said, changing the Alibaba order from DAP to CFR is not just a harmless label change. CFR normally means the seller's responsibility ends once the goods are loaded for air/sea transport, not door delivery. If they are still promising door-to-door delivery, double clearance, and taxes included, then this needs to be written clearly in the Alibaba order terms/messages before you approve anything.
Your intuition is 100% correct—this is exactly about the 13% VAT export tax rebate in China. The commenter above is right about the 'why', but you need to understand the legal risk this shift creates for you.
Here is the reality of Alibaba Trade Assurance:
- The Motivation: To get the rebate legally, they must declare customs under their own company name. CFR makes their accounting cleaner for the Chinese tax bureau.
- The Hidden Trap: 'Double clearance and tax included to your door' is a freight forwarder's slang, NOT a legal Incoterm. If you accept the system change to CFR, the seller's legal liability ends when the goods reach your destination port.
- The Worst-Case Scenario: If the freight forwarder's grey-market 'double clearance' channel gets seized by your local customs (very common), or lost in local transit, you will lose the Alibaba dispute. Why? Because the system says CFR, meaning you bear the post-port risk.
The Fix: You don't have to block their tax rebate, but you must protect your liability. Tell the seller: 'I will approve the CFR change ONLY IF you add this exact text to the Alibaba order remarks: *Notwithstanding the CFR Incoterm, the seller guarantees Door-to-Door delivery, including all destination customs clearance and taxes. Seller bears full financial liability for any loss, damage, or customs seizure until the goods are physically delivered to the buyer's address.**'*
Thank you!
I sent this and they replied with: the freight forwarder can only guarantee against loss, not damage
So it appears there was some information they left out.. Thank you!

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