FOB vs CIF vs DDP from China: Which Incoterm Saves You Money?

FOB, CIF, and DDP are the three most common Incoterms on China export contracts. Each shifts cost and risk differently — and the "cheapest" option on paper is often the most expensive after hidden fees.

FOB (Free on Board)

Supplier delivers goods to the port and clears China export. You pay: ocean freight, insurance, US import customs, duties, taxes, and domestic delivery.

Best for: Experienced importers with a US customs broker and freight contracts.

Watch out for: Supplier's "FOB price" does not include $3,000–$8,000+ in US-side costs.

CIF (Cost, Insurance & Freight)

Supplier pays freight to the US port and basic insurance. You still pay: import customs clearance, duties, taxes, port handling, and delivery from port to your door.

Best for: Importers who want freight included but can handle US customs themselves.

Watch out for: Supplier chooses the carrier; you pay destination charges you did not negotiate.

DDP (Delivered Duty Paid)

One all-inclusive price: pickup in China, freight, insurance, US customs, duties, taxes, and delivery to your door. GSC quotes DDP so you know total landed cost upfront.

Best for: E-commerce sellers, first-time importers, FBA sellers, and anyone who wants zero customs surprises.

Side-by-Side Comparison

• Cost predictability: DDP wins — one quote covers everything
• Lowest sticker price: FOB — but total cost often highest after US fees
• Ease of use: DDP — no customs broker or bond needed in most cases
• Control over carrier: FOB — you choose the shipping line

Read our detailed DDP vs DDU guide and Incoterms 2020 overview.