FOB, CIF and DDP change cost, control and risk in different ways. Confirm the commercial route before approving a supplier quotation.
Practical sourcing insight
- FOB places export clearance and delivery to the named port with the seller, while the buyer normally controls the main freight onward.
- CIF includes freight and insurance to the destination port, but it does not remove the buyer's need to confirm insurance scope, customs clearance, or local charges.
- DDP can simplify delivery but only works when tax, import licensing, and the importer-of-record arrangement are confirmed in writing.