Trade Terms: How to Choose Between DDP and FOB
Trade terms (Incoterms) define the division of responsibilities between buyer and seller in transport, customs clearance, and costs. AwwwBuy commonly uses DDP and FOB.
DDP (Delivered Duty Paid)
- We are responsible for international shipping + customs clearance + destination country duties, and deliver the goods to your specified address;
- Total cost transparent, door-to-door, hassle-free;
- Suitable for small and medium buyers without their own freight forwarder who want an all-in-one price to the door.
FOB (Free On Board)
- We are responsible for preparing the goods and delivering them to the designated port/carrier;
- After that, shipping, destination port customs clearance, and duties are arranged by you (or your freight forwarder);
- Suitable for buyers who have their own freight forwarder and wish to control international costs themselves.
How to Choose
| Scenario | Recommended Term |
|---|---|
| Small batch, need door-to-door, want transparent total price | DDP |
| Have own freight forwarder, handle customs clearance yourself, control costs | FOB |
For who bears the duties, see Who Bears Duties and Import Taxes; for international shipping and customs clearance process, see How International Shipping and Customs Clearance Are Arranged.