Difference between DDP and CIF in shipping terms

Posted on 10 April 2023 Category : Inco Terms

Inco Terms for movement of goods is revised as Incoterms 2020. The importers and exporters are suggested to use the latest version. Click here to read the contents of Inco Terms 2020.

The information provided here is part of Online export import training guide

How to differentiate CIF with DDP

What are the difference between DDP and CIF?

As per Inco terms of shipping, DDP means Delivered Duty Paid (named destination mentioned). CIF means, Cost, Insurance and Freight (paid up to the destination mentioned).

The detailed articles on CIF and DDP with simple language have been mentioned in this web blog separately. I suggest you to read these articles on CIF and DDP, so as to enable you to have a clear idea on these shipping terms.

What is DDP? What are the responsibilities of buyer and seller under DDP terms? How does CIF term work? What are the obligations of buyer and seller under CIF terms?

For your immediate reference, I give below web links on DDP and CIF separately below.

Inco Terms for movement of goods is revised as Incoterms 2020. The importers and exporters are suggested to use the latest version. Click here to read the contents of Inco Terms 2020.

Inco terms DDP, easily explained

How does Inco terms CIF work in international trade?

The above articles easily explain about CIF and DDP.

Detailed articles about Inco Terms of Delivery under export and import of International business have been mentioned in separate category – INCO TERMS – in this web site. You can click here to read.

Also read How to get export order from foreign buyers?

I hope, you have satisfied with the difference between DDP and CIF explained easily. Do you have different thought on difference between CIF and DDP?

The above information is a part of Import Export course online

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Comments

P. Castrilli : On 11 February 2015 Firstly, thank you very much for providing such a useful and educational website for individuals interested in learning more about the complex rules and terminology (acronyms) of the Import/Export business. If you have a moment, perhaps you can advise me on which method is best when importing a product (made in China) or parts (made in China) but assembled in the USA. As I indicated in the subject line, the Seller (who is in China) has offered to ship the goods either DDP or CIF. In your professional opinion, which would be best; or is there another method I should be requesting? Additionally, which of the delivery terms (DDP vs. CIF) would be the most cost-effective yet provide the greatest recourse/protections in the event there is an issue with the merchandise/product? And finally, do you have a check list that an individual interested in importing goods/products from abroad could follow when committing to importing said products?

Winkle: On 01 October 2015 Hi, I want to know that for trading of Garments/Artificial Jewellery/Handicraft Items in between India to any other country what type of licenses required or any other govt. formalities ? I would be highly obliged if Experts do share their knowledge on this to me. Thanks Winkle

NARASIMHA RAO: On 15 April 2016 smal DDP & CIF SAME PLS CONFORM,

eleen: On 28 June 2022 I bought an item from turkey. Now is at the custom. The shipping company said to clear the item i need to pay for the custom. However the supplier promise door to door delivery and no mention of the custom charge initially. So now he wants me to pay for the custom charge but i will like to cancel my order. I just want to know how to clear the goods out? Whose responsible to pay for the custom? Beside custom do i still need to pay for the transport cost to deliver the item to singapore? Any issue for the supplier to clear the goods at the custom? What other cost involved beside clearing the custom?Should i wish to clear the item, do i still need to pay for transport cost to deliver the parcel from turkey to singapore? Can you help?

lejla: On 04 July 2022 I wanted to check in to see if you had any incoming containers that we could help you out with- whether that be for drayage or our trans loading / warehousing services! Keep in mind - we have 500k sq ft of warehouse space inside the port, and run 50 drivers every day in and out of the terminals. We can also broker all around the U.S. If you need anything at all, please just let me know! I look forward to hearing from you, and moving some more freight together!