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    How can FOB/CIF customers cope with surging US tariffs?
    USURE: Your Trusted Partner for International Logistics
    We specialize in DDP (Delivered Duty Paid) and DDU (Delivered Duty Unpaid) shipping solutions from China to the USA.
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    How can FOB/CIF customers cope with surging US tariffs?

    2025-03-14

    CIF (Cost, Insurance, and Freight), FOB (Free On Board) and DDP (Delivered Duty Paid) are common delivery terms in international trade, which specify the liability, cost, and risk division of the buyer and seller in the transportation of goods. Here's how they differ:
    1. CIF (Cost, Insurance, and Freight) /FOB (Free On Board)

    Division of responsibilities:
    The Seller is responsible for shipping the goods to the port of destination, paying the freight and insurance, and bearing the risks of the goods before loading at the port of loading.
    Buyer's liability: After loading the goods, the risk is transferred to the buyer, who is responsible for discharging the goods at the destination port, import customs clearance and subsequent transportation.

    1. Expenses to be borne:

    Seller: Pay the cost of the goods, freight and insurance.
    Buyer: Payment of discharge charges, import duties and subsequent transportation charges at destination port.
    Risk transfer: After the goods are loaded at the port of loading, the risk is transferred to the buyer.
    In SUMMARY:
    Seller: Less participation and lower risk;
    Buyer: need to handle customs clearance, tariff payment, back-end delivery and a series of matters. Spend more effort, pay more cost.

    1. DDP (Delivered Duty Paid)

    Division of responsibilities:
    Seller's responsibility: responsible for shipping the goods to the warehouse designated by Usure freight forwarder, or Usure arrange door-to-door pickup. There is almost no risk and very little effort.
    Buyer's responsibility: Just wait for the delivery of the goods to be responsible for signing, without any effort and bear any risk.
    Expenses to be borne:
    Seller: Only need to bear the freight from the warehouse to the designated warehouse.
    Buyer: No extra charge, just wait to receive the goods.
    Transfer of risk: Upon delivery of the goods at the location designated by the Usure freight forwarder, all risk is transferred to Usure

    1. Summary of major differences

    CIF/FOB: The seller is responsible for freight and insurance, the risk is transferred to the buyer after shipment, and the buyer is responsible for destination port charges and import duties.
    DDP ：Usure assumes all shipping risks and frequently updates the status of the goods for both buyers and sellers. The buyer and seller can understand the condition of the goods without any effort until the goods are signed for.

    Due to the increasing tariff rates in the United States, customers who have been choosing CIF/FOB can consider trying to understand the new mode of transportation DDP. Open the door to a new world!

              If you have any logistics needs, you can contact:
              Email：Jojo@usurelogistics.com                     Zel@usurelogistics.com
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