FOB, CIF, or DDP — How to Choose for Your China Shipment

If you’re booking a shipment from China, the most important call you’ll make is which Incoterm to use. The right choice decides who controls carriers, who handles customs, where risk transfers, and how predictable your landed cost will be. This guide explains FOB, CIF, and DDP in plain language so you can pick a term in minutes and justify it to finance and operations.

What each term means in practice

FOB (Free On Board). The supplier clears export and loads your goods on the vessel you choose. You (or your forwarder) control the main leg, insurance, customs at destination, duties/taxes, and final delivery.

CIF (Cost, Insurance and Freight). The supplier pays ocean freight and insurance to your named port. You still clear customs, pay duties/taxes, and arrange delivery from the port to your DC, 3PL, FBA, or site.

DDP (Delivered Duty Paid). The supplier (or their forwarder) delivers to your door with duties/taxes included. You get a single landed number and minimal paperwork. Convenience is high; transparency varies—demand a breakdown.

Quick way to choose

• You want maximum control/visibility and already have a broker/3PL → FOB
• You want the supplier to handle ocean+insurance only → CIF
• You want a single landed price to your door and lack a broker → DDP (with a detailed cost breakdown and clear importer-of-record)

What changes for your team

• Control: FOB > CIF > DDP
• Cash clarity: FOB/CIF expose line items; DDP bundles them
• Operational effort: DDP is light; FOB/CIF require your forwarder and broker
• Surprise-fee risk: Highest when costs are opaque—often weak DDP offers

Scenarios that make it real

First import, no broker, strict retailer intake. DDP can work if the forwarder is solid and you get a transparent landed quote that includes routing-guide compliance. Otherwise, set up a broker and use CIF/FOB for visibility.

Experienced shipper with 3PL and contracts. FOB fits: you pick schedules, negotiate rates, and control deconsolidation/delivery.

Multi-factory consolidation to one DC. FOB or CIF with your consolidator usually beats DDP. You decide the hub, cutoffs, and pallet/carton builds for intake.

Date-critical launch needing partial early inventory. Split mode: air an advance (FOB air) and ocean the balance (FOB/CIF). DDP rarely handles split-mode cleanly at a good price.

Hidden traps (and how to avoid them)

• DDP importer of record. Confirm the legal entity clearing customs. If a third party is used, know who’s liable.
• CIF destination charges. Terminal and documentation fees at the port are yours—budget them.
• FOB paperwork quality. If CI/PL/HS codes are wrong, you inherit the problem at import—align docs early and match labels.
• All terms: “Standard export pack” is not a spec. If your DC/FBA/retailer needs specific labels or carton limits, state them.

Landed cost—share this with finance

Landed Cost per Unit
= EXW/FOB unit price
+ Origin handling & inland (if EXW)
+ Ocean/Air + insurance (CIF includes this portion)
+ Destination & port fees
+ Duties, taxes, brokerage
+ Final delivery to DC/3PL/FBA/site


FOB shows each line clearly. CIF bundles ocean+insurance with the supplier; you budget the rest. DDP gives one number—request a component view so you can compare.

Labels, documents, and intake still decide success

Incoterms don’t change what your invoice, packing list, HS codes, COO certificates, and labels must say. FBA and retailers enforce carton limits, barcodes, and pallet patterns regardless of FOB/CIF/DDP. Most “shipping problems” are document problems in disguise.

How Orient Exports keeps this decision clean

We start with your lane, end point, and intake rules, then recommend the term that balances control, visibility, and speed. If you choose FOB/CIF, we coordinate bookings and customs with your partners. If you choose DDP, we still surface a line-item breakdown so you’re not flying blind. Our documents and labels mirror what inspectors saw and what your DC/retailer checks—reducing holds, fees, and re-deliveries.

Bottom line

Pick FOB for control with your own forwarders/broker.
Pick CIF if you want the supplier to cover ocean+insurance only.
Use DDP for a single landed price—only with transparent partners.
Whatever you choose, documents and labels determine whether intake is smooth.

Need help selecting a term for your lane? Share your end point, dates, and intake rules. We’ll return a shipping plan, document checklist, and landed-cost view you can put on the calendar today.