FOB, CIF or DDP: which trade term should I use for apparel imports?
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- Issue Time
- Nov 6,2026
Trade terms decide who books freight, who carries risk in transit and who clears customs - they move real money, so match them to your experience and margin structure:
- FOB (Free on Board): we deliver cleared goods onto the vessel; you book the main freight. Default for experienced importers - you control freight cost, choose forwarders, and see the true logistics margin. Best when you ship regularly or consolidate multiple suppliers.
- CIF (Cost, Insurance, Freight): we arrange and pay freight and insurance to your port, but risk transfers earlier than cost and you still clear import. Convenient for occasional shipments, though you accept our freight rates.
- DDP (Delivered Duty Paid): we handle transport, insurance, duties and clearance to your door. Simplest for first-time importers, but the seller carries customs risk in your market, so the price premium is real - worth comparing against building your own clearance capability.
Practical pattern we see: brands start on CIF or DDP for the first container, then move to FOB once their forwarder relationships are in place - typically saving several percent per shipment.
Whichever term you choose, it is quoted in writing on the proforma invoice before production starts.