FOB, CIF or DDP: which trade term should I use for apparel imports?

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.

See how trade terms feed into the landed cost breakdown.