Understanding Trade Terms: FOB, CIF, DAP, DDP

Incoterms explained simply, so you know who pays for what.

Trade terms (Incoterms) define who pays for shipping, insurance and risk

Four common terms

FOB (Free On Board): you pay from the Chinese port onward

Factory loads on ship, your forwarder handles the rest

Good if you have your own forwarder

CIF (Cost, Insurance, Freight): factory pays to your destination port, including insurance

You handle import and inland

Simple for sea shipments

DAP (Delivered At Place): factory delivers to your address, not unloaded

You handle import duties

DDP (Delivered Duty Paid): factory handles everything to your door, including import duties

Most convenient, but more expensive

How to choose: have forwarder → FOB

Simple sea → CIF

Want door delivery → DAP

Want all-inclusive → DDP

At Yiguangnian, we offer FOB Shanghai / Ningbo, CIF, DAP and DDP to most countries

Ask us for a quote on your preferred term.