Key takeaways
- FOB: the seller delivers onto the vessel; everything after that is yours. Suits buyers with their own forwarder and negotiated rates.
- CFR: adds the sea freight to your arrival port, but no insurance.
- CIF: the same as CFR plus marine insurance. The most common default in the region.
- DDP: arrives at your warehouse door with duty paid and clearance done. Dearest, and the least work.
- CIF still leaves local clearance and duty with you. That is the single most common misunderstanding.
What the four terms actually mean
FOB — Free On Board
The seller handles everything up to the point the goods are loaded on the vessel at origin: packing, inland transport, export documents and loading. From that moment, freight, insurance, clearance and delivery are yours.
Choose it if: you have a forwarder you trust and rates negotiated on more volume than your supplier ships. Plenty of large Gulf importers buy FOB for exactly this reason.
CFR — Cost and Freight
The seller pays the sea freight to your arrival port. But risk passes to you when the goods are loaded at origin, not on arrival — and that is a material difference: if the cargo is damaged at sea, the loss is yours even though the seller paid the freight.
Choose it if: you already carry an annual marine policy covering your shipments, so there is no point paying for the seller's cover.
CIF — Cost, Insurance and Freight
The same as CFR with marine insurance added in your name. This is the default on most of our offers, because it gives a buyer a clean number to the port without carrying the risk of the voyage.
Watch out: standard CIF insurance is often minimum cover — 110% of invoice value on restricted terms. For high-value goods, ask explicitly for wider cover.
DDP — Delivered Duty Paid
The seller delivers to the address you name, with duty paid and clearance completed. You simply receive. This is the maximum obligation a seller can take on.
Choose it if: you are importing for the first time, have no clearing agent, or simply want one final number and no dealings with customs. It costs more, but it is a number you can plan against.
Who carries what
| Responsibility | FOB | CFR | CIF | DDP |
|---|---|---|---|---|
| Export documents | Seller | Seller | Seller | Seller |
| Sea freight | Buyer | Seller | Seller | Seller |
| Marine insurance | Buyer | Buyer | Seller | Seller |
| Import duty | Buyer | Buyer | Buyer | Seller |
| Customs clearance | Buyer | Buyer | Buyer | Seller |
| Inland delivery | Buyer | Buyer | Buyer | Seller |
| Risk transfers | At loading | At loading | At loading | On delivery |
The most expensive misunderstanding
Plenty of first-time buyers read CIF as "everything is paid". It is not. When the container reaches your port you still owe import duty, VAT where it applies, port handling, your agent's fee, and transport to your warehouse. On some categories those items add a meaningful percentage to the invoice value.
If you want a number that genuinely covers everything, the term you are asking for is DDP. And if you want to know what CIF will really cost you, read the landed cost guide.
Which term suits you
- First import, no clearing agent: ask for DDP. Pay more and buy certainty on the first deal.
- You have an agent you trust: CIF is the usual balance of price and control.
- You import regularly at volume: price FOB against your own forwarder's rates — you will often save.
- You carry an annual marine policy: CFR avoids paying twice for cover.
Two questions to put on every quotation
- Which term exactly, and to which port or address? "CIF" on its own with no named destination means nothing.
- What is not included? Ask for an explicit list of what you will pay on arrival.
We quote on FOB, CFR, CIF and DDP and spell out what is included in each — see our delivery terms.
Get quoted on the term that suits you
Tell us your arrival port or city and how much clearing you want to handle, and we will suggest the right term and quote on it.