Comparison
Last updated:
FOB vs CIF vs DDP
FOB puts the goods on board at the Chinese port and hands both cost and risk to the buyer there. CIF adds freight and insurance to the destination port but risk still transfers at loading. DDP carries everything — freight, duty, clearance — to the buyer's door. Experienced African importers buy FOB and run their own freight; first-time buyers into the EAEU often want DDP because the Declaration of Conformity is registered on their side anyway.
| FOB | CFR / CIF | DDP | |
|---|---|---|---|
| Seller pays to | On board at load port | Destination port (CIF adds insurance) | Buyer's named place, duty paid |
| Risk transfers | On board at load port | On board at load port | At delivery |
| Who books freight | Buyer | Seller | Seller |
| Who clears import | Buyer | Buyer | Seller |
| Typical use | Morocco, Senegal, Ghana — importers with own forwarders | Buyers wanting a landed-port price | New buyers, small lots, EAEU with a local representative |
| Named place | Ningbo, Shanghai | Casablanca, Dakar, Tema | Buyer's warehouse |
Versus
Which term should an African importer use?
FOB Ningbo or Shanghai, in most cases. Morocco's large importers and Senegal's growing ones run their own freight contracts and clearance, and FOB lets them compare tea price without freight noise. CIF is useful when comparing landed-port offers across suppliers.
Why is DDP into Russia different?
DDP into Russia is different because EAEU clearance depends on a Declaration of Conformity registered by an importer or representative established inside the Union. A seller offering DDP into Russia must have that representative in place; the term does not remove the requirement.
Frequently asked
Does CIF mean the seller carries risk to the destination?
No. Under CIF the seller pays freight and insurance to the destination port, but risk transfers when the goods are on board at origin.
What Incoterms does ODM Tea quote?
FOB, CFR or CIF for sea freight, loading at Ningbo or Shanghai as confirmed in the quotation. Central Asia is quoted by rail through Khorgos–Altynkol under a rule for any mode of transport, because FOB, CFR and CIF apply only to sea and inland waterway. Destination-side terms are offered only where import responsibility is documented.
Next step
Deciding between FOB and CIF / DDP?
Send the destination and the quantity. ODM Tea answers with the one that fits and the clauses that go with it.