If you're importing clothing internationally, these three shipping terms determine exactly who pays for what — and who's liable if something goes wrong in transit. Misunderstanding them is a common and costly mistake for first-time buyers.
FOB (Free on Board)
Under FOB, the supplier's responsibility ends once goods are loaded onto the shipping vessel at the port of origin (e.g., Karachi). From that point, the buyer arranges and pays for ocean freight, insurance, and import customs clearance.
Best for: Buyers who already have a freight forwarder and want more control (and often lower total cost) over the shipping leg.
CIF (Cost, Insurance, and Freight)
Under CIF, the supplier arranges and pays for shipping and insurance to the destination port, but the buyer still handles import customs clearance and inland delivery from the port.
Best for: Buyers who want shipping and insurance handled for them but are comfortable managing customs clearance in their own country.
DDP (Delivered Duty Paid)
DDP is the most comprehensive term: the supplier handles everything — freight, insurance, customs clearance, and import duties — delivering goods directly to the buyer's warehouse door.
Best for: First-time importers or buyers who want zero involvement in logistics and customs, in exchange for a higher, all-inclusive unit price.
Quick Comparison
FOB — Loading at origin port — Freight, insurance, customs, delivery
CIF — Freight + insurance to destination port — Customs, inland delivery
DDP — Everything, door to door — Nothing
Which Should You Choose?
New importers without an established freight forwarder or customs broker relationship generally benefit from DDP or CIF, trading a slightly higher unit price for simplicity. Experienced importers with existing logistics partners often prefer FOB for better cost control.
A Common Pitfall
Comparing supplier quotes without confirming which shipping term each is based on is a frequent, expensive mistake — an FOB quote will always look cheaper than a DDP quote for the same product, because it's missing freight, duty, and customs costs that you'll still have to pay separately.
Not sure which shipping term fits your order? OSD Apparels offers FOB, CIF, and DDP options and can walk you through the true landed cost. Request a Quote.