Skip to main content
courier services

What is the difference between DDP and CIF services?

By November 23, 2021No Comments

As per Inco word of shipping, DDP is an abbreviation of Delivered Duty Paid (named destination mentioned). CIF is an abbreviation of Cost, Insurance and Freight (paid up to the goal mentioned).

Why Purchasing CIF or DDP May is not the Best?

Free On Board is a legal term that requires that the shipper owns the goods while in transit. CIF terms mean that the seller merely assumes responsibility for said goods till they reach the destination port. DDP (Delivered Duty Paid) states to the seller paying the duties and taxes of the delivery. China DDP Shipping Services make it clear to the customer while selecting. These several acronyms are known as INCO terms. Various companies that import merchandise from foreign assume that they may save time and money. They can do this by letting the wholesaler select and pay for transportation and duty charges. What consumers often flop to realize is that there are hidden charges related to importing this way. You can find several primary reasons for customers to consider changing their terms to Free on Board.


When you purchase CIF, you do not control when or how your shipment reaches. Vendors can use the cheapest possible option and pay no attention to getting your merchandise. The next time you import, you may ask yourself whether the cost of your capital is lower than the price of longer for your goods.


Regularly, Cost Insurance and Freight pricing comprises supplier profits on transportation. Vendors include mark-up on freight charges, and those increases are passed along to you. The services will make it easier for you to count expenses ahead of time, avoiding surprises. If the price sounds too decent to be accurate, it possibly is.

ISF Fines

Moreover, as the US Importer of Record, you can hold accountable for the accuracy of the ISF form. The penalties experienced are as high as $10,000 and can even lead to appropriation of your shipment. Not worrying about this particular risk is just one more reason to have China DDP Shipping Services.


In the event of damage, questions often come up regarding who is responsible. In contrast, it may ultimately work out a lot of time, effort, and energy loss due to these disagreements. Under the Incoterms standard, risk transfer is clearly defined and can help avoid these costly disputes. Therefore, the owner of the goods is responsible for damage or loss during transport. The point at which the owner can transfer from the seller to the purchaser is of utmost importance.

Hidden Charges

CIF or DDP can sound cheaper in theory, but the problem is that your wholesaler determines how and when produce is shipped. The freight forwarder, particularly the seller, will add additional charges to your price quote. Destination Terminal Handling Charges or DTHC or other handling fees are added later. They will claim the prices are for the United States side. It is one of those dirty little secrets in the delivery business.

Leave a Reply