FOB vs CIF vs DDP: Shipping Cabinets from China

When you import cabinets from China, the price you're quoted only means something once you know the trade term behind it. FOB, CIF and DDP decide who arranges the shipping, who pays for what, and where the risk passes from seller to you. Compare two quotes on different terms and you'll pick the wrong supplier. This guide explains each term in plain language and helps you choose.

What Incoterms are (and why they matter here)

Incoterms are a set of standard international trade terms — maintained under Incoterms 2020 — that define exactly where the seller's responsibility ends and yours begins: transport, insurance, export and import clearance, duties, and the point at which risk transfers. For bulky, fragile goods like cabinets, that dividing line has real cost. The same container of kitchens can carry three very different "prices" depending on whether it's quoted FOB, CIF or DDP — not because the cabinets differ, but because different amounts of freight, insurance and duty are already baked in.

FOB — Free On Board

Under FOB, the manufacturer delivers the goods, cleared for export, loaded onto the vessel at the China port of loading (e.g. Shenzhen or Guangzhou). From that point on, ocean freight, insurance, destination charges, import clearance and duties are yours.

FOB gives you the most control: you (or your freight forwarder) choose the carrier, route and insurance, which often means the lowest total cost if you ship regularly. The trade-off is that you need a forwarder and some import know-how. FOB is the most common term for experienced buyers and the cleanest basis for comparing factory prices, because it isolates the cost of the goods from the cost of moving them.

CIF — Cost, Insurance and Freight

Under CIF, the seller arranges and pays ocean freight and minimum insurance to your destination port. Risk still technically passes at the origin port, but the seller books the main voyage.

CIF is convenient if you don't want to arrange sea freight yourself — the goods arrive at your port and you take over from there (local charges, customs, duties, inland delivery). The catch: the freight and insurance are chosen by the seller, so you have less control over carrier and cost, and you still handle import clearance and duties at your end. Good for buyers who want the ocean leg handled but are comfortable clearing customs locally.

DDP — Delivered Duty Paid

Under DDP, the seller delivers the goods all the way to your named address, having paid everything — freight, insurance, import clearance and duties. It's the maximum-convenience, minimum-hassle option: you effectively receive the cabinets at your door.

DDP is the simplest to buy but usually the highest headline price, because every downstream cost is bundled in (and the seller carries the risk and the paperwork). It's popular with buyers who don't want to touch logistics or customs at all. Watch two things: confirm what "delivered" means (kerbside vs inside), and make sure duties are genuinely included so there's no surprise bill on arrival.

Side-by-side comparison

Which term should you choose?

There's no universally "best" term — it depends on your experience and volume:

• Ship often, have a forwarder? FOB usually wins on total landed cost and control.
• Want the sea freight handled but you can clear customs? CIF is a comfortable middle.
• First order, or you simply don't want to deal with logistics and duties? DDP buys you simplicity — just verify duties are truly included and confirm the delivery point.

Two rules that save buyers money every time. First, always compare quotes on the same term — an FOB number will always look cheaper than a DDP number for the identical cabinets. Second, ask what's included and excluded: packing, pallets, documents, destination port charges, and whether "delivered" means to the door or to the kerb. When you've verified who you're buying from — see our factory — and put every quote on the same basis, the real cost comparison becomes obvious. For the full sourcing process around this, see how to source kitchen cabinets from China.