Incoterms

Related terms

FOB

FOB is Free On Board, an Incoterm for sea and inland waterway freight under which the seller's responsibility ends when goods are loaded on the vessel at the named port. In US domestic trade, FOB origin or FOB destination instead sets where title and freight risk transfer.

DDP

DDP is Delivered Duty Paid, the Incoterm under which the seller delivers goods to the buyer's named place, cleared for import, with freight, duties, and taxes paid. It puts the most responsibility on the seller and gives the buyer the closest thing to a true landed price.

Landed cost

Landed cost is the total cost of a part delivered to the buyer's dock, including piece price, tooling amortization, packaging, freight, insurance, duties, tariffs, brokerage, and inventory carrying cost. Comparing offshore and domestic quotes on piece price alone understates the cost of the offshore part.