Shipping & Documents / Explainer
FOB vs CIF vs DDP: Which Shipping Term Should Importers Use?
Learn the basic responsibilities behind commonly used shipping terms.
FOB keeps the main freight decision with the buyer
The supplier normally prepares the goods for export and the buyer or buyer-appointed forwarder handles the main freight after the agreed handover point. Confirm the exact port and document responsibilities.
CIF includes freight to the named destination port
The quotation includes cost, insurance, and freight to the agreed port, but the buyer still needs to confirm destination charges, customs handling, and final delivery.
DDP needs destination-specific confirmation
A DDP quote may include delivery and import handling, but duties, tax treatment, and local delivery terms must be clarified for the destination country.
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