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Home / Compare / DDP vs FOB

Compare · Shipping terms

DDP vs. FOB: who pays for the part after the port.

Same cabinets, two very different totals. The trade term on the quote decides whether the freight, the duty and the clearance are your problem to solve - or the factory's.

DDPALL-IN TO SITE
FOBYOU HANDLE PORT→SITE
301TARIFF ON CN WOOD
18-40 dOCEAN TRANSIT
2TERMS THAT MATTER

What the terms mean

Two lines where the factory's job ends.

The difference between DDP and FOB is a single line: the point at which responsibility and cost pass from the supplier to you. Everything before that line is the cabinets; everything after it is the ocean, the border and the truck.

  • DDP - Delivered Duty Paidfactory covers it to your door
  • FOB - Free On Boardfactory's job ends on the vessel
  • CIF (often quoted too)factory covers cost + insurance + freight, not duty

In practice CIF lands between the two: the freight is in the price, but the US duty and clearance still land on you. If a quote says CIF, ask exactly which of the lines below are and are not inside the number.

Side by side

Who pays for each line.

Cost lineDDP (we cover)FOB (you cover)
Cabinet priceIncludedIncluded
China export clearanceIncludedIncluded
Ocean freightIncludedYou
US import duty (Section 301)IncludedYou
US customs clearanceIncludedYour broker
Drayage / port truckingIncludedYou
Insurance in transitIncludedYou
Delivery to your siteIncludedYou arrange
Best forFirst import, fixed budgetYou have a broker + volume

Count the "You" column: under FOB the freight, the duty, the clearance, the drayage and the insurance are all your account and your risk. Under DDP they are inside the one number, quoted per port before you pay.

Where the cost hides in FOB

The line items that catch people out.

The FOB price looks lower until the container is already at the port and the real lines arrive. These are the three that cluster together - the deep walkthrough is on the US import guide.

  • The tariff lineSection 301 duty, found at the port
  • Storage / demurragedays the box sits unresolved
  • Drayage + broker feesthe short haul and the paperwork
Dark fitted kitchen delivered complete and installed
The container the terms refer to. Under FOB, once it is on the vessel the freight, the duty and the clearance are yours; under DDP they stay with us to your dock.

When FOB makes sense

It's a real choice, not a trap.

FOB is the right term when you already run it: you have a US customs broker you trust, you move more than one container a year, you want to shop the freight yourself, and you know the HS code and the current duty rate. In that setup, controlling the port side can genuinely beat an all-in DDP number. For a first order without a broker in place, DDP removes the one risk you cannot easily recover from - a container clearing slowly while the install date holds.

How we quote DDP

Line items, per port, nothing buried.

A DDP quote from us carries the cabinet price, then ocean freight, then import duty, then drayage and delivery as separate lines, quoted for your specific port of entry. Transit we commit in writing: 18-22 days to the US West Coast and Vancouver, 32-40 to the US East Coast, 15-20 to Sydney. The full path and the date commitments are on the how we work page.

FAQ

DDP vs. FOB, in plain answers.

Is DDP always the cheaper option?
Not always. For a first import, DDP is usually the safer total because every cost after the factory is already in the number. FOB can be cheaper if you have an efficient US broker and recurring volume - but the apparent savings often disappear once you add the Section 301 duty, drayage, broker fees and the risk of a container sitting at the port.
What is the Section 301 tariff and why does it matter here?
It is a US duty applied to Chinese imports, including wood products such as cabinets. Under FOB it lands on you at the port, usually discovered by your broker after the container has arrived. Under a real DDP price it is inside the number. Ask for the HS code and the duty rate on the quote - a supplier that knows both has shipped this before.
Who clears US customs under each term?
Under DDP the factory or its export agent handles US clearance and pays the duty. Under FOB you appoint a US customs broker to file the entry, pay the duty and release the container. The difference is whose account and whose risk that process is.
Can I take FOB and still have your help on the port side?
We can share the HS code and the duty rate and recommend a broker, but under FOB the freight, duty and clearance run on your account and your risk. If you want those inside one price, that is what DDP is for.
How is the DDP price broken down so I can check it?
As separate line items: the cabinet price, then ocean freight, then import duty, then drayage and delivery - quoted per port of entry. Nothing is buried in a single number, so you can compare it against an FOB quote line for line.

Primary sources for duty and clearance

One number to the dock.

Send the floor plan and your port of entry - the DDP total comes back with the 3D layout, line items separate. Free, no deposit to start.