1. FOB (Free On Board)

Meaning: The seller delivers the goods on board the vessel at the named port of shipment.
Applies to: Sea freight only.

Seller is responsible for:
    •    Inland transportation to the port
    •    Export customs clearance
    •    Loading the goods onto the vessel (designated by the buyer)

Seller is not responsible for:
    •    Ocean freight
    •    Import customs clearance
    •    Destination delivery and insurance

Buyer is responsible for:
    •    Freight from the port of shipment
    •    Import duties, taxes, and clearance at the destination
    •    Final delivery to the end location

Summary: The seller handles everything up to the ship, the buyer takes over after loading.

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2. DDP (Delivered Duty Paid)

Meaning: The seller delivers the goods to the buyer’s destination, with all costs and taxes paid.
Applies to: All transport modes (sea, air, express, etc.)

Seller is responsible for:
    •    Entire transportation process
    •    Export customs clearance
    •    Import customs clearance
    •    Paying all import duties and taxes
    •    Final delivery to the buyer’s door

Buyer does not need to handle:
    •    Any part of logistics or customs

Summary: The seller takes care of everything, and the buyer simply receives the goods.

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Example Comparison:

Term    Seller Covers    Buyer Covers    Best For
FOB    Inland transport + export clearance + loading    Freight + import clearance + final delivery    Buyers with import experience
DDP    Everything: freight, duties, clearance, delivery    Nothing    New buyers or those unfamiliar with imports