Compare responsibilities before comparing totals
FOB and DDP quotations allocate transport, customs, tax, and risk differently. A lower-looking number is not necessarily a lower landed cost. Put both quotations into the same worksheet: product value, origin charges, freight, insurance, destination handling, duty, tax, customs service, final delivery, and contingency.
FOB gives the buyer more logistics control
Under an FOB arrangement, the buyer or nominated forwarder generally controls the main carriage after the agreed port stage. This can work well for experienced importers consolidating faucets with other bathroom products, negotiating annual freight rates, or requiring visibility over shipping documents and destination charges.
DDP can simplify delivery but needs careful verification
A DDP offer may be useful for samples or buyers without an established import process. Confirm who will act as importer, how duty and tax are handled, whether the route is compliant, what documents the buyer receives, and which charges can still arise at destination. Clarify delivery location, unloading, appointment fees, and remote-area surcharges.
Protect product claims during transport
Agree carton strength, palletization, moisture protection, carton marks, and photo records before loading. Identify who files a freight claim and which evidence is required. Product defects, transit damage, and missing cartons require different records and should not be mixed into one general complaint.
Choose by shipment pattern
Samples, small LCL orders, repeat distributor containers, and staged project deliveries may justify different terms. The right choice depends on volume, destination capability, consolidation needs, tax treatment, schedule risk, and the buyer鈥檚 ability to manage exceptions鈥攏ot on a blanket preference for one Incoterm.
