FOB vs CIF vs DDP: Which Incoterm Should You Use for Bags?

Incoterms decide where your responsibility starts and ends. Choosing the wrong one is one of the most common — and most expensive — mistakes when importing bags. Here is the practical difference.

The three terms buyers use most

FOB: the default for experienced importers

FOB (Free On Board) is what our published prices use. The price covers the bag, export packing and getting the goods onto the vessel in China. You then arrange freight with your own forwarder.

Best when: you already have a forwarder, you import regularly, or you want full control of the shipping cost and the customs broker.

Watch out for: if you have never imported before, FOB means you must arrange and pay for the sea freight, insurance and clearance yourself.

CIF: freight included to your port

CIF (Cost, Insurance and Freight) adds ocean freight and marine insurance to your destination port. You still pay import duty and arrange clearance and inland transport.

Best when: you want the supplier to handle the sea leg, or your volumes are too small to negotiate good freight rates on your own.

Watch out for: the CIF freight figure is sometimes marked up. Ask for the FOB price and a separate freight quote so you can compare.

DDP: door-to-door, the easiest option

DDP (Delivered Duty Paid) means we deliver to your address with all freight, duty and clearance included. You receive one price and one invoice.

Best when: you sell on Amazon FBA, you are a small brand without a customs broker, you are shipping to the US, UK, EU, Canada or Australia, or you simply want no surprises.

Watch out for: DDP prices carry a risk margin for the supplier, so per-unit cost can be higher than arranging freight yourself. It also works best above a certain volume — for very small shipments, express couriers are usually cheaper.

Worked example: 3,000 cotton totes to the UK

• FOB Guangzhou: you pay the factory price, then roughly £700–1,100 sea freight, plus UK duty (bags are typically 2–12% depending on material) and 20% VAT on the landed value, plus clearance fees.
• CIF Felixstowe: factory + freight and insurance in one invoice; you still handle duty, VAT and clearance.
• DDP London: one number that includes everything — useful for budgeting, and it avoids the 20% VAT cash-flow hit at import because it is handled inside the price.

Which should you choose?

• First import, small volume: DDP (or express courier for samples).
• Regular importer with a forwarder: FOB — usually the cheapest overall.
• Amazon FBA seller: DDP to the fulfilment centre.
• Building a landed-cost model: ask for quotes on all three and compare total cost, not unit cost.

Duty rates and HS codes

Bag classification depends on material. Non-woven and woven textile bags commonly fall under HS chapter 4202 or 6305; plastic-based bags differ. Duty rates vary by country and by trade agreement. Always confirm the HS code with your customs broker — the same bag can attract different rates depending on how it is declared.

What our prices include and exclude

Prices on this website are FOB Guangzhou, with 1–2 colour print included. They exclude freight, insurance and import duties/taxes. Ask us for a CIF or DDP quote and we will include those lines explicitly.

Next step

Tell us your destination city and quantity and we will quote FOB, CIF and DDP side by side so you can compare. Request shipping quotes.

EcoBag Factory — custom bag manufacturer in Guangzhou, China. MOQ 500 pcs, 1–2 colour print included, samples in 3–7 working days, FOB / CIF / DDP worldwide.