FOB, CIF, DDP: Understanding Incoterms for Wholesale Footwear Imports
When you receive a wholesale price quote from a Chinese footwear supplier, the price is expressed with an Incoterm - FOB, CIF, or DDP. Understanding these terms is critical for accurately calculating your landed cost, managing risk, and comparing quotes from different suppliers.
What are Incoterms?
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC). They define who - buyer or seller - is responsible for freight, insurance, customs clearance, and risk at each stage of the shipment journey.
FOB - Free On Board
What it means: The supplier covers all costs and risks until goods are loaded onto the vessel at the port of departure (e.g. FOB Guangzhou). All costs and risks then transfer to the buyer.
Buyer responsibility: Ocean freight, marine insurance, destination port charges, customs clearance, import duties, and last-mile delivery.
Best for: Experienced importers with established freight forwarder relationships who want maximum control and transparency.
CIF - Cost, Insurance, and Freight
What it means: The supplier covers ocean freight and marine insurance to the destination port (e.g. CIF Hamburg). Risk transfers to buyer upon arrival at destination port.
Best for: Buyers who prefer the supplier to handle freight booking but still want to control customs clearance in the EU.
DDP - Delivered Duty Paid
What it means: The supplier handles everything including export and import customs clearance, all freight, and import duties, delivering to your named address.
Best for: First-time importers or buyers who prefer simplicity over cost optimization.
Landed Cost Calculation Example
For a FOB Guangzhou order of 100 pairs of Chelsea boots at USD 75 per pair:
| Cost Component | Amount (USD) |
|---|---|
| FOB Product Cost (100 pairs x USD 75) | 7,500 |
| Ocean Freight (LCL to Hamburg) | 380 |
| Marine Insurance (0.3%) | 23 |
| EU Import Duty (leather boots approx 3.7%) | 278 |
| VAT (Germany 19%) | 1,554 |
| Customs Handling | 120 |
| Last-Mile Delivery | 90 |
| Total Landed Cost | 9,945 |
| Landed Cost Per Pair | 99.45 |
Wellgo Pricing Terms
All standard Wellgo wholesale quotes are FOB Guangzhou. We can arrange CIF to major EU ports (Hamburg, Rotterdam, Antwerp) and DDP to your warehouse for orders over 200 pairs. Request a quote here.
Frequently Asked Questions
- What is the typical lead time from order to FOB departure?
- 30-45 days for stock styles. 45-60 days for OEM/custom styles.
- Which EU ports do you ship to most frequently?
- Hamburg, Rotterdam, Antwerp, Felixstowe, and Le Havre are our most common destination ports.
- Can I use my own freight forwarder for FOB orders?
- Yes. You can nominate any freight forwarder and we will coordinate with them directly after order confirmation.
- What documents do you provide for EU customs clearance?
- Commercial invoice, packing list, bill of lading, certificate of origin, REACH compliance certificate, and material composition declaration.
- Is import VAT refundable for EU B2B buyers?
- Yes. EU VAT-registered businesses can reclaim import VAT through their regular VAT returns. A valid EU VAT number is important for wholesale buyers.