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Incoterms, LCL vs FCL and customs brokers for skincare imports

Who pays for what and who carries the risk under each Incoterm, how to choose air or sea and LCL or FCL, what a freight forwarder and a customs broker each do, and your first shipment from Korea step by step.

Not legal adviceIncoterms only work as written in your contract, and import rules depend on your country and product. Confirm the details with your forwarder and customs broker.

Short answer

Incoterms 2020 are the ICC's standard trade terms that say where the seller hands over the goods, who pays each part of the transport, and when risk passes to the buyer. KoreanOEM quotes FOB Incheon: we clear the goods for export and deliver them on board at Incheon, and you pay freight, insurance, import duty and taxes from there through your own freight forwarder. Most first skincare orders travel by air (about 5 to 10 days) or by sea in a shared container (LCL, priced per cubic meter, about 4 to 6 weeks door to door); a full container (FCL) pays off only for large volumes. In the US you also need an importer of record, a customs bond for formal entries, a licensed customs broker, and an ISF filing for ocean freight.

Our export and import guide gives the short version of each step. This guide adds the detail you need to book your own freight and clear customs.

Incoterms 2020 for a skincare brand

The International Chamber of Commerce (ICC) publishes the Incoterms rules. The current set is Incoterms 2020, with 11 rules. Write the rule, the named place and the version on the purchase order, for example "FOB Incheon, Incoterms 2020". The seven that matter most when you buy skincare from Korea:

Rule	Seller delivers	Risk passes to you	Seller pays	You pay
EXW (Ex Works)	At its premises, not loaded	When goods are made available at the premises	Nothing beyond the goods	Loading, Korean export clearance, all freight, insurance, import
FCA (Free Carrier)	To your carrier at a named place, export cleared	On handover to your carrier	Export clearance, delivery to the named place	Main freight, insurance, import
FOB (Free On Board)	On board the vessel at the named port, export cleared	When the goods are on board	Export clearance, origin port costs, loading	Sea freight, insurance, destination costs, import
CFR (Cost and Freight)	On board at origin	When the goods are on board at origin	Export, sea freight to your port	Insurance (if you want it), destination costs, import
CIF (Cost, Insurance and Freight)	On board at origin	When the goods are on board at origin	Export, sea freight, minimum insurance to your port	Destination costs, import
DAP (Delivered at Place)	At your named place, ready for unloading	At your named place	All transport to your place	Unloading, import clearance, duty and taxes
DDP (Delivered Duty Paid)	At your named place, import cleared	At your named place	Everything, including import duty and taxes	Unloading

Points founders often miss:

FOB, CFR and CIF are sea and inland waterway rules. ICC Academy material notes they suit port-to-port sea freight; for containers and air, FCA, CPT or CIP fit better because the handover happens at a terminal or airport, not over the ship's rail.
Under CFR and CIF the seller pays the freight, but you carry the risk from origin. If the goods are damaged at sea, you claim on the insurance, not against the seller.
CIF insurance is minimum cover. Incoterms 2020 require only Institute Cargo Clauses (C) under CIF, a narrow cover. Many importers buy their own all-risks cargo insurance instead.
DDP makes the seller your importer. The seller must be able to clear customs and pay import VAT in your country, and for cosmetics the importer often has legal duties too (in the EU and UK, a responsible person; in the US, the importer of record under customs law). That is why manufacturers rarely offer DDP for production orders.
Incoterms do not cover everything. They do not set the price, the payment terms, when ownership passes, or what happens if the goods are defective. Those go in the contract; see supplier payment safety.

Why KoreanOEM quotes FOB Incheon

Every KoreanOEM price is FOB Incheon. We file the Korean export declaration, pay the origin costs and deliver the goods on board at Incheon. From that point you choose and pay the freight, insurance and import.

You control the freight. You pick the forwarder, the service and the timing, and you can compare quotes. If you prefer, we give you a freight quote once cartons are packed and weights are final.
Export clearance stays in Korea. Korean export formalities are handled where the goods are, by us, unlike EXW.
One clear goods value. The FOB value on our commercial invoice is the value your customs broker declares. In the US, duty is charged on the transaction value without international freight; in the EU, UK, Canada and Australia, the duty or tax base adds freight in their own ways.
No surprise import roles. You, or your importer, stay the importer, which matters for your registrations and responsible person duties.

If your forwarder prefers FCA for a container or an air shipment, ask us before you order. The cost split is close to FOB, and the purchase order should state whichever rule you agree.

Air vs sea

	Air freight	Express courier	Sea freight
Time from Korea	About 5 to 10 days	A few days for small parcels	About 4 to 6 weeks door to door
Charged by	Chargeable weight (the higher of actual and volumetric weight)	Chargeable weight, often with a smaller volumetric divisor	Volume or weight (per CBM for LCL), or per container (FCL)
Best for	First orders of a few hundred to a few thousand units, urgent reorders	Samples and small replenishments	Production orders and reorders you can plan
Dangerous goods	Strictest rules (IATA)	Often refused without a dangerous goods agreement	IMDG rules; usually easier than air

Volumetric weight for air freight is usually the carton's length x width x height in cm divided by 6,000; express couriers often divide by 5,000. A carton of 40 x 30 x 25 cm has a volumetric weight of 5 kg at 6,000. If it weighs 8 kg, you pay for 8 kg. Skincare in glass is often dense enough that actual weight decides; light plastic tubes in large boxes are charged by volume.

Alcohol-based products and aerosols need dangerous goods handling, especially by air; see the hazmat shipping guide before you book.

LCL vs FCL and the CBM math

CBM is a cubic meter. Carton volume in CBM = length x width x height in meters. LCL (less than container load) means your cartons share a container with other shippers and you pay per CBM or per metric ton, whichever is higher (1 CBM is treated as 1,000 kg), usually with a minimum of 1 CBM plus fixed charges at origin and destination. FCL (full container load) means you rent a whole 20 ft or 40 ft container.

Example: 1,000 serums by seaSay 100 units of a 30 mL serum fit a carton of 40 x 30 x 25 cm weighing 8 kg (our example; your packing list gives the real figures). One carton is 0.4 x 0.3 x 0.25 = 0.03 CBM. 1,000 units are 10 cartons: 0.3 CBM and 80 kg. LCL charges the 1 CBM minimum plus fixed fees, so by sea the per-unit freight on a shipment this small is driven by the fixed charges, and air can cost about the same and arrive weeks sooner. At 5,000 units (1.5 CBM, 400 kg), sea LCL is usually far cheaper than air.

	LCL	FCL 20 ft	FCL 40 ft
Nominal capacity	Any volume, priced per CBM	About 33 CBM inside	About 67 CBM inside
Usable in practice	Not an issue	Less, because cartons and pallets do not fill every corner	Less, for the same reason
Speed	Slower: consolidation at origin and unpacking at a warehouse at destination add days	Faster: the container goes straight to you	Faster
Handling and damage risk	Higher: more handling of your cartons	Lower	Lower
Fits when	Most skincare orders up to several pallets	Large runs or several SKUs together	Very large runs

Forwarders often compare LCL and FCL prices once a shipment passes roughly 10 to 15 CBM. Ask for both quotes at that point. Pallets add volume but protect cartons and speed up warehouse receiving; ask your 3PL whether it wants palletized freight.

Freight forwarder vs customs broker

	Freight forwarder	Customs broker
Does	Books space with airlines and shipping lines, consolidates LCL, arranges pickup, insurance and delivery, handles transport documents	Classifies goods, files the import entry, calculates and pays duty and taxes on your behalf, deals with customs and other government holds
Licensed?	Rules vary by country	In the US, licensed by CBP; in Canada, licensed by CBSA; in Australia, licensed by the ABF; in the EU and UK, acts as your customs representative
You need	One for each shipment from Korea under FOB	One in each country you import into

Many forwarders have an in-house customs brokerage, which is simpler for a first shipment. Either way, the importer stays legally responsible for what is declared.

US imports: importer of record, customs bond and ISF

Importer of record (IOR).
The party responsible for the entry, the duty and compliance with US law. Most brands use their own US company, identified by its IRS employer number. A foreign company can also be the IOR, with a customs bond and a customs broker. Choose the IOR before production, because it appears on your documents.
Customs bond.
A bond is a surety's guarantee to CBP that duties and penalties will be paid. Commercial shipments above $2,500 need a formal entry, which needs a bond. A single transaction bond covers one entry; a continuous bond covers a year of entries. CBP's guidance sets a continuous bond at the greater of $50,000 or 10% of the duties, taxes and fees you paid in the past 12 months. With tariffs higher since 2025, sureties ask for larger bonds, so check the amount with your customs broker.
ISF (10+2) for ocean freight.
The Importer Security Filing gives CBP 10 data elements from the importer (plus 2 from the carrier) at least 24 hours before the cargo is loaded on the vessel abroad. Late or wrong filings can draw penalties of $5,000 per violation. Your customs broker or forwarder files it, with the seller, manufacturer and packing details from your manufacturer. Air freight has no ISF.
Entry and duty.
Your customs broker files the entry, and duty, fees and any extra tariffs are paid to CBP. For current duty on Korean skincare, see the HS codes and duties guide.
FDA.
Cosmetics are FDA-regulated at entry, and FDA can examine or detain a shipment. Labels must meet US rules and the products must be listed under MoCRA; see US MoCRA compliance.

Importer setup in the EU, UK, Canada and Australia

European Union: an EORI number for the importer, a customs representative (direct or indirect), import VAT in the country of entry, and an EU Responsible Person with the product file and CPNP notification in place; see the EU cosmetics regulation guide.
United Kingdom: a GB EORI number, a customs agent, import VAT (postponed VAT accounting is available to registered businesses) and a UK Responsible Person with SCPN notification; see the UK cosmetics regulation guide.
Canada: a Business Number with an import-export program account, registration in the CBSA's CARM Client Portal, a licensed customs broker, and the Cosmetic Notification Form within 10 days of first sale.
Australia: an ABN, AICIS registration for the importer of cosmetics, an import declaration for goods over A$1,000 (usually lodged by a licensed customs broker), and GST at import.

The documents your customs broker needs

Document	What it shows	Who issues it
Commercial invoice	Seller, buyer, goods description, HS code, quantity, value, currency, Incoterm, country of origin	The manufacturer
Packing list	Cartons, units per carton, weights and dimensions	The manufacturer
Bill of lading (sea) or air waybill (air)	Contract of carriage and receipt for the cargo; needed to collect it	The carrier or forwarder
Certificate of Origin	Korean origin, for FTA duty rates	The exporter or a Korean authority, depending on the agreement
SDS (safety data sheet)	Composition hazards and transport classification	The manufacturer
COA (certificate of analysis)	Test results for the batch	The manufacturer
Arrival notice	Arrival date, charges due, where to collect	The carrier or forwarder at destination

For sea freight, ask your forwarder whether you need an original bill of lading or a telex release (an electronic release that saves sending paper). The goods value on the invoice must match what you paid; undervaluing to save duty is customs fraud and the importer carries the penalty.

How to hire a customs broker

Check the license.
In the US, customs brokers are licensed by CBP; ask for the license and the permit for your port, or a national permit.
Ask about cosmetics.
Experience with FDA-regulated cosmetics (or the EU and UK responsible person system), and with Korean origin and FTA claims.
Get the fee list.
Entry fee, ISF fee, bond cost, per-line charges, disbursement fees on duty they pay for you, and any monthly minimum.
Check the systems.
Electronic filing, a portal where you see entries and documents, and how quickly they pass on CBP or FDA messages.
Sign the authority.
In the US, a customs power of attorney lets the customs broker act for you. Keep copies of every entry; the importer must keep customs records for years.

Your first shipment, step by step

8 weeks before goods are ready: choose your team.
Freight forwarder and customs broker, importer of record, bond (US), EORI (EU, UK), and your 3PL's delivery address.
Confirm codes and duty.
Send your customs broker the product list and ingredient type; agree the HS codes and whether you will claim an FTA rate.
Give us the shipping details.
Consignee (importer), notify party, delivery address, Incoterm, air or sea, and whether you need a Certificate of Origin.
Book space.
Once QC is done and the packing list has final weights and sizes, your forwarder books the flight or vessel. For US ocean freight, the ISF is filed at least 24 hours before loading.
Pay the balance, ship.
You pay the 50% balance before shipment. We file the Korean export declaration and deliver the goods on board at Incheon.
Documents travel.
You receive the commercial invoice, packing list, bill of lading or air waybill, Certificate of Origin, COA and SDS, and forward them to your customs broker.
Arrival and clearance.
Your customs broker files the entry, you pay duty, taxes and local charges, and the goods are released.
Delivery and receiving.
The forwarder delivers to your 3PL; check counts against the packing list and report damage at once; see the 3PL and fulfillment guide.

Common mistakes

Agreeing to EXW without anyone to handle Korean export clearance and loading.
Relying on CIF's minimum insurance for glass bottles and serums with a high value per carton.
Asking a manufacturer for DDP and making it your importer, which clashes with registration and responsible person duties.
Booking sea LCL for a tiny first order and waiting weeks to save little or nothing.
Not having a customs bond or importer of record ready when the goods arrive in the US.
Missing the ISF deadline for ocean freight.
Shipping alcohol-based or aerosol products without a dangerous goods declaration.
Undervaluing the invoice to cut duty.

Checklist

Incoterm, named place and version written on the purchase order
Freight forwarder chosen and quoted for air and sea
Customs broker hired and power of attorney signed
Importer of record decided; EORI or Business Number ready
US customs bond in place for formal entries
HS codes and FTA claim agreed with the customs broker
Consignee, notify party and delivery address sent to the manufacturer
Cargo insurance arranged
ISF filed at least 24 hours before loading (US ocean)
Dangerous goods checked for every SKU
All documents received and forwarded to the customs broker
Counts checked against the packing list at receiving

How KoreanOEM helps

We handle the Korean side of every shipment so your forwarder and customs broker can do theirs.

FOB Incheon on every price: export declaration filed and goods delivered on board, with a freight quote from us once cartons are packed if you want one.
The export documents: commercial invoice, packing list, export declaration, Certificate of Origin for FTA rates, COA and SDS, with an import guide for your market in My page.
Registrations that keep entries clean: US MoCRA product listing filed by our team for USD 150 per SKU, EU and UK files through our partner, and a label proof check before printing.
Clear timing: production about 4 to 5 weeks after sample approval, QC and documents about 1 week, then 5 to 10 days by air or 4 to 6 weeks by sea.

Get a free quote See our export work

Frequently asked questions

What does FOB Incheon mean?

The seller clears the goods for export in Korea and delivers them on board the vessel at Incheon; from that moment the risk is yours, and you pay the freight, insurance, import duty and taxes. Every KoreanOEM price is FOB Incheon.

Which Incoterm should I use to import skincare from Korea?

FOB or FCA suits most brands: the manufacturer handles Korean export clearance, and you control freight, insurance and import through your own forwarder. EXW leaves export clearance to you, and DDP makes the seller your importer, which rarely fits cosmetics.

Should I ship my first skincare order by air or sea?

Air, about 5 to 10 days from Korea, often makes sense for a first order of a few hundred to a few thousand units, because sea LCL charges a minimum volume plus fixed fees. Sea, about 4 to 6 weeks door to door, is cheaper for larger orders and planned reorders.

When is FCL better than LCL?

A full container pays off when your shipment is large enough that LCL per-CBM charges exceed the container price, which forwarders often check once you pass roughly 10 to 15 CBM. FCL is also faster and safer because the container goes straight to you without being shared.

Do I need a customs broker to import skincare?

In practice yes. A licensed customs broker classifies the goods, files the entry and pays duty for you; in the US it also files the ISF for ocean freight and helps you get a customs bond.

What is ISF 10+2?

The Importer Security Filing is a US rule for ocean freight: the importer sends CBP 10 data elements at least 24 hours before the cargo is loaded abroad, and the carrier adds 2 more. Late or wrong filings can draw penalties of $5,000 per violation.

Do I need a customs bond for a skincare shipment to the US?

Yes for formal entries, which commercial shipments above $2,500 require. You can buy a single transaction bond for one entry or a continuous bond for a year, which CBP sets at the greater of $50,000 or 10% of the duties, taxes and fees you paid in the past 12 months.

What documents does a customs broker need for skincare from Korea?

The commercial invoice, packing list, bill of lading or air waybill, Certificate of Origin if you claim an FTA rate, and the SDS; the COA and your product registrations help with any government check. Your manufacturer issues the invoice, packing list, origin proof, SDS and COA.

Sources

Checked against these sources in October 2026. Rules and fees change; check with the authority or your importer before you sell.