What is the difference between DDP and CIF

DDP is Delivered Duty Paid, which is in accordance with CIF terms. To put it simply, the cost of arriving at the port of destination is paid by the seller, and the customs clearance and miscellaneous expenses after the port of destination are borne by the buyer.

deq ** Terminology refers to Delivered Terminal (...... at the port of destinationDesignated port of destination) deq** delivery term refers to the seller at the designated port of destination terminal to the buyer for disposal, without going through the import customs clearance formalities, that is, the delivery is completed. The seller shall bear all risks and costs of transporting the goods to the designated port of destination and unloading them at the terminal. The deq term requires the buyer to go through the import customs clearance formalities and at the time of importation all the fees for customs clearance, duties, taxes and other charges.

If the parties wish the seller to bear all or part of the costs incurred at the time of importation, this should be clearly stated in the sales contract. The term can only be used if the goods are transported by sea, inland waterway or multimodal transport and are discharged at the terminal at the port of destination. However, if the parties want the seller to bear the obligation to transport the goods from the terminal to other points within or outside the port (warehouse, terminal, transport station, etc.), the DDU or DDP terms should be used.

CIF (Cost+Insurance+Freight) is the division of risk between the buyer and the seller after the goods cross the ship's side. This term requires the seller to be responsible for the freight and insurance costs of arrival at the port, but all risk of damage to or loss of the goods passes to the buyer as soon as the goods cross the ship's side. View the original post

The differences between DDP and CIF are as follows: 1. The person handling the import declaration procedures is different; 2. The place of delivery is different; 3. The location of risk transfer is different; 4. DDP is to the consignee's door, and CIF is only responsible for the port of destination; 5、ddp：deliverydutypaid.

That is, the seller ** includes door-to-door, and the buyer does not bear any costs, but still has to bear the risk of freight; 6. CIF is COST, INSURANCE.

DDP** terminology refers to the freight, insurance, shipping charges and other port miscellaneous expenses from the port of origin to the importing country, and the port of destination unloading charges and other port miscellaneous expenses, all of which are paid by the seller, and the import duties of the importing country.

It is also the responsibility of the seller. The DDP term is a very risky international term.

The biggest difference between DDU and DDP is mainly the question of who bears the risks and costs of the goods in the process of import customs clearance at the port of destination.

If the exporter is able to complete the import declaration, then the DDP can be chosen, and if the exporter is not able to handle the relevant matters, or is not willing to go through the import formalities, risk and expense, then the DDU terminology should be used. AP stands for Delivery of Place, which means that the seller has delivered the goods to the destination designated by the buyer by means of transport, and then hands over the goods loaded on the means of transport (without unloading) to the buyer for disposal, that is, the delivery is completed.

DDP means that the seller completes the delivery of the goods that have not been unloaded on the delivery vehicle to the buyer after completing the import customs clearance procedures at the designated destination. The place of delivery of DAP can be either at a designated place on the border between the two countries, on a ship at the port of destination, or at a point on land within the importing country.

Under the DDP's delivery conditions, the seller delivers the goods at the designated destination after completing the export customs clearance formalities, which is in effect that the seller has shipped the goods into the importer's domestic market. If the seller has difficulty in going through the import formalities directly, the buyer can also be asked to assist in the process. If the seller is not able to obtain an import permit or go through import formalities, either directly or indirectly, the DDP term should not be used.

DDP is a true landed goods** because the seller bears all the risks before the goods are transferred to the buyer. Under the CIF clause, although the seller pays the sea freight, the seller does not bear the risk of loss of the goods during the shipping process, and CIF usually refers to FOB + freight + insurance.

First, the reference is different.

1. CIF: cost plus insurance plus freight, the components of the price include the usual freight and the agreed insurance premium from the port of shipment to the agreed destination port.

2. DDU: The seller will directly transport the goods to the designated place in the country of import, and shall bear all the costs and risks of transporting the goods to the designated place.

2. The obligations of the seller are different.

1. CIF: In addition to having the same obligations as CFR terms, the seller must also apply for freight insurance for the buyer and pay the insurance premium, according to the general practice of the country, the insurance amount insured by the seller should be increased by 10% according to the CIF price.

2. DDU: The seller must bear all the costs of transporting the goods to the designated destination, except for import procedures and customs duties, including: freight, premium, export tax and related expenses + appropriate profit + production cost.

Third, the cost method is different.

1. CIF: CIF total price in USD = (FOB USD unit price x number of late wax + total freight and other miscellaneous charges) [1 - (1 + insurance mark-up rate) x insurance rate].

2. DDU: The seller must, at his own expense, provide the buyer with the bill of lading and/or usual transport documents that may be required to receive the goods in accordance with the provisions of A4 B4.

1. FOB is delivered on board at the port of shipment, and the risk is transferred from the seller to the buyer after the goods are loaded on the ship, and FOB is only applicable to sea freight; Closed.

2. CIF is the port of destination delivery, the seller is responsible for freight and insurance, since the goods are loaded on the ship, the risk is transferred from the seller to the buyer, with FOB a potato virtual sample, CIF is only applicable to sea freight;

and insurance paid to) means that the seller delivers the goods to the carrier designated by the seller, during which the seller must pay the freight for transporting the goods to the destination and insure the buyer against the risk of loss or damage to the buyer's goods in transit. In other words, the seller bears all risks and additional costs after delivery.

Difference Between DDP and CIF:

1. The person handling the import declaration procedures is different;

2. The place of delivery is different;

3. The location of risk transfer is different;

4. DDP is to the consignee's door, and CIF is only responsible for the port of destination;

5、ddp:delivery duty paid.That is, the seller ** contains door-to-door.

The seller is responsible for freight costs, insurance, customs clearance fees, customs clearance fees, door-to-door freight, etc. The buyer is not responsible for any costs, but still bears the risk of the shipment.

6. CIF is Cost, Insurance, and FreightDelivery is made by the seller when the goods cross the ship's side at the port of shipment. The seller shall pay the freight and insurance premiums of the goods from the port of shipment to the port of destination, but the risk of damage and loss of the goods after loading on board the ship shall be borne by the buyer.