Customers regularly get blindsided by customs duties because they accepted FOB pricing thinking it was the final number. A 2026 guide to incoterms that actually saves money.
FOB Shenzhen vs DDP your warehouse
FOB (Free On Board) means we get the parts to the port loaded onto a vessel. Everything after that — sea freight, destination port fees, customs clearance, import duty, last-mile trucking, your warehouse — is on you. The quoted FOB price does not include any of it.
DDP (Delivered Duty Paid) means we cover everything door-to-door, including import duty. The price is the final price. For US customers in 2026, the duty on aluminum CNC parts under HS 8479 is ~3.7%; on plastic injection parts under HS 3926 it is ~4-7%. EU duty is generally 0-6.5% depending on classification. Add brokerage fees of $80-150 and last-mile trucking of $150-400.
When each makes sense
FOB is right when you have a freight forwarder relationship and want full visibility into costs. DDP is right when you do not, and want a single number you can budget against. DAP (Delivered At Place) is the middle ground — we deliver to your door but you handle customs.
For parts under $5K total value, DDP almost always wins because the per-shipment customs and brokerage fees eat the savings of DIY clearance. For multi-pallet recurring orders, FOB gives you the most leverage to optimize logistics.
What we quote by default
DDP for orders under $20K, DAP for orders over $20K, FOB on request. We will quote any incoterm — just ask in your RFQ which you want. And no, we do not mark up the freight. The duty number we quote is the duty number you pay; we just front the cash to the broker.
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