Delivery Terms: DDP, DAP, CIF and FOB

Cargo port lit up at night with cranes and containers
Incoterms® 2020

Delivery termsThe 11 Incoterms® 2020 rules explained simply

What each delivery term includes, who pays for freight and insurance, who handles import procedures, and when the risk passes to you.

  • DDP: all-inclusive
  • 11 Incoterms® 2020 rules
  • Most common: DDP, DAP, CIF and FOB
Every purchase specifies a delivery term (Incoterm). It defines where we deliver your goods, who pays for freight and insurance, who handles import procedures, and when the risk passes to you. We use the official Incoterms® 2020 rules of the International Chamber of Commerce.
DDPIn Mexico, all our prices are DDP. In other countries we quote DDP, DAP, CIF or FOB; the term is always stated in your quote or on the product page.
At a glance

Who handles each stage?

From the factory in China to your door: what we cover under each of the 11 rules.

The ones we usually work with

DDP, DAP, CIF and FOB in detail

DDP

Delivered Duty Paid

CommonAll our prices in Mexico

This is the "all-inclusive" option. We take care of manufacturing, international transportation, customs clearance, and payment of import taxes and duties. You receive the goods at the agreed address or location without handling any paperwork.

  • IncludesInternational freight, export and import clearance, import taxes and duties, and transportation to the agreed destination.
  • Your responsibilityOn-site unloading, handling, crane or forklift, installation, and local permits to operate the equipment.
  • RiskOurs throughout the entire journey; it passes to you when the goods arrive at the destination, ready to be unloaded.
  • Ideal forAll purchases in Mexico and customers in other countries who prefer not to deal with customs.

DAP

Delivered at Place

Common

We deliver the goods to the agreed destination in your country, but you are the importer: you handle customs clearance and pay the import taxes.

  • IncludesInternational freight, export clearance in China, and transportation to the agreed destination.
  • Your responsibilityCustoms broker, taxes, duties, permits and your country's import regulations; unloading, handling and installation.
  • RiskOurs during the journey; it passes to you when the goods arrive at the destination, ready to be unloaded.
  • Ideal forCompanies that already have a customs broker in their country and prefer to control the import.

CIF

Cost, Insurance and Freight

CommonOcean shipments only

We pay the ocean freight and cargo insurance up to the port of destination. From arrival at the port, you take care of everything else.

  • IncludesTransportation to the port of shipment in China, export clearance, ocean freight, and cargo insurance with minimum coverage up to the port of destination. You can request extended coverage at an additional cost.
  • Your responsibilityUnloading at the port of destination, destination port charges, customs clearance, taxes, duties, and transportation from the port to your location.
  • RiskPasses to you the moment the goods are loaded on board the vessel in China. If damage occurs in transit, the claim is filed with the insurer using the policy we provide to you.
  • Ideal forImporters with a customs broker at the port of destination who want us to book the vessel.

FOB

Free On Board

CommonOcean shipments only

For customers who already have all their import documentation and logistics in place. We deliver the goods loaded on board the vessel you designate, at the agreed port of shipment in China (for example Shenzhen, Guangzhou, Ningbo or Shanghai), with export clearance completed.

  • IncludesManufacturing, export packaging, transportation to the port of shipment, export clearance in China, and loading on board the vessel.
  • Your responsibilityBooking the vessel through your freight forwarder, ocean freight, cargo insurance, destination port charges, customs clearance, taxes and duties, and transportation to your location.
  • RiskPasses to you once the goods are loaded on board the vessel in China. We recommend taking out cargo insurance from that point on.
  • RequirementsHave a freight forwarder, be registered as an importer in your country, and comply with applicable import regulations. FOB orders must be paid 100% before loading on board.
  • Ideal forExperienced importers who already have their own freight rates and want the lowest product price.

Your freight forwarder must coordinate the loading date with us and send us the booking in a timely manner.

The other Incoterms® 2020 rules

EXW, FCA, FAS, CFR, CPT, CIP and DPU

The ones we usually work with are DDP, DAP, CIF and FOB. If your operation requires another rule, ask us and we'll check whether we can quote it.

EXW

Ex Works

Any mode of transport

We make the goods available to you at the agreed factory or warehouse in China. From there, everything is your responsibility, including export.

  • IncludesManufacturing and packaging, with the goods ready for pickup on the agreed date and at the agreed place.
  • Your responsibilityLoading onto the pickup vehicle, export clearance in China, freight, insurance, import clearance, taxes and duties, and transportation to your location.
  • RiskPasses to you when the goods are made available to you at the agreed place in China.
  • Ideal forBuyers with a freight forwarder in China who can handle export clearance.

FCA

Free Carrier

Any mode of transport

We deliver the goods, with export clearance completed, to the carrier you designate at the agreed place in China.

  • IncludesManufacturing, packaging, export clearance and handover to your carrier. If delivery is at our facilities, we also load it onto their vehicle.
  • Your responsibilityInternational freight, cargo insurance, import clearance, taxes and duties, and transportation to your location.
  • RiskPasses to you when the goods are handed to your carrier at the agreed place in China.
  • Ideal forImporters with their own freight forwarder, for air, containerized sea or land shipments.

FAS

Free Alongside Ship

Ocean shipments only

We place the goods alongside the vessel you designate, at the agreed port of shipment in China, with export clearance completed.

  • IncludesManufacturing, packaging, transportation to the port of shipment, and export clearance in China.
  • Your responsibilityLoading on board, ocean freight, cargo insurance, destination port charges, import clearance, taxes and duties, and transportation to your location.
  • RiskPasses to you when the goods are placed alongside the vessel at the port in China.
  • Ideal forBulk or large-volume cargo that does not travel in a container.

CFR

Cost and Freight

Ocean shipments only

We pay the ocean freight up to the port of destination, but without cargo insurance.

  • IncludesTransportation to the port of shipment in China, export clearance, loading on board, and ocean freight to the port of destination.
  • Your responsibilityCargo insurance, unloading and destination port charges, import clearance, taxes and duties, and transportation from the port to your location.
  • RiskPasses to you when the goods are loaded on board in China, even though we pay the freight. We recommend taking out cargo insurance from that point on.
  • Ideal forImporters who already have their own cargo insurance.

CPT

Carriage Paid To

Any mode of transport

We pay the transport up to the agreed place of destination, but the risk passes to you once we hand the goods to the first carrier in China.

  • IncludesExport clearance in China and main carriage to the agreed place of destination.
  • Your responsibilityCargo insurance, import clearance, taxes and duties, and unloading at the destination.
  • RiskPasses to you when the goods are handed to the first carrier in China.
  • Ideal forAir or multimodal shipments when you already have your own cargo insurance.

CIP

Carriage and Insurance Paid To

Any mode of transport

Like CPT, but we also take out cargo insurance with broad coverage up to the agreed place of destination.

  • IncludesExport clearance in China, main carriage, and cargo insurance with broad coverage (Institute Cargo Clauses A) up to the agreed place of destination.
  • Your responsibilityImport clearance, taxes and duties, and unloading at the destination.
  • RiskPasses to you when the goods are handed to the first carrier in China. If damage occurs in transit, the claim is filed with the insurer using the policy we provide to you.
  • Ideal forAir or multimodal shipments where you want insurance included.

DPU

Delivered at Place Unloaded

Any mode of transport

Like DAP, but we also unload the goods at the agreed destination. You are the importer.

  • IncludesInternational freight, export clearance in China, transportation to the agreed destination, and unloading.
  • Your responsibilityCustoms broker, taxes, duties, permits and your country's import regulations; additional handling and installation.
  • RiskOurs during the journey and unloading; it passes to you once the goods are unloaded at the destination.
  • Ideal forDestinations without their own unloading equipment, when you prefer to control the import.
Quick summary

Comparison table

Term Where we deliver International freight Cargo insurance Customs and import taxes Risk passes to you
EXW At our factory or warehouse in China Customer Customer Customer When made available to you in China
FCA To the carrier you designate, at the agreed place in China Customer Customer Customer When handed to your carrier in China
FAS Alongside the vessel at the port of shipment in China Customer Customer Customer When placed alongside the vessel at the port of origin
FOB On board the vessel at the port of shipment in China Customer Customer Customer When loaded on board at the port of origin
CFR On board the vessel in China, with freight paid to the port of destination Ciaespinoza.com, up to the port of destination Customer Customer When loaded on board at the port of origin
CIF On board the vessel in China, with freight and insurance paid to the port of destination Ciaespinoza.com, up to the port of destination Ciaespinoza.com, minimum coverage up to the port of destination Customer When loaded on board at the port of origin
CPT To the first carrier in China, with transport paid to the agreed destination Ciaespinoza.com, up to the agreed destination Customer Customer When handed to the first carrier in China
CIP To the first carrier in China, with transport and insurance paid to the agreed destination Ciaespinoza.com, up to the agreed destination Ciaespinoza.com, broad coverage up to the agreed destination Customer When handed to the first carrier in China
DAP At the agreed destination Ciaespinoza.com Our risk until delivery Customer On arrival at the destination, before unloading
DPU At the agreed destination, unloaded Ciaespinoza.com Our risk until unloading Customer Once unloaded at the destination
DDP At the agreed destination Ciaespinoza.com Our risk until delivery Ciaespinoza.com On arrival at the destination, before unloading
Cardboard boxes moving up a conveyor belt into a cargo plane
Air shipments

What about air shipments?

Under the Incoterms® 2020 rules, FAS, FOB, CFR and CIF apply exclusively to sea transport. For air shipments we quote DDP or DAP, or the equivalent term stated in your quote (for example FCA, CPT or CIP).

15–29business days by air
30–58business days by sea

Estimated times, depending on the country. For CIF and FOB, the time covers transit to the port of destination.

Under all terms

What you should always keep in mind

Unloading and handling

Final unloading, handling, cranes, forklifts and site access are the customer's responsibility, except unloading under DPU.

Local permits

The customer is responsible for the permits, licenses and regulations required to install and operate the product in their locality.

Quick guide

Which one suits me?

Not sure?

Message us and we'll help you choose the best option for your country.