Incoterms for Tire Importers: FOB vs CIF vs DDP
When you buy tires by the container, the price you’re quoted means very different things depending on the Incoterm. Incoterms define exactly where the seller’s responsibility ends and yours begins — for freight, insurance, and customs. Here’s what bulk tire importers need to know.
The Incoterms that matter for tire containers
| Term | Seller covers | You cover | Best when |
|---|---|---|---|
| EXW (Ex Works) | Goods at factory | Everything else (freight, export, import, duty) | You have a strong freight forwarder |
| FOB (Free On Board) | Goods + export + loaded on vessel | Ocean freight, insurance, import & duty | Most common for experienced importers |
| CIF (Cost, Insurance, Freight) | Above + ocean freight + insurance to destination port | Import clearance & duty | You want freight handled to your port |
| DDP (Delivered Duty Paid) | Everything incl. import duty, to your door | Little — simplest for buyer | You want a true all-in landed price |
Why it changes your landed cost
An FOB quote looks cheaper than DDP — but FOB excludes ocean freight, import clearance, and import duties. Always compare quotes on the same Incoterm, or convert to a full landed cost before deciding.
Which should a new importer choose?
- New to importing? DDP or CIF reduce the moving parts you manage.
- Have a forwarder/broker? FOB usually gives the best control and price.
- Always confirm who files the customs entry and pays duty — that’s the most common surprise.
We can quote new tires factory-direct by the container on clear terms, or fulfill smaller US/Canada orders from our distribution office. Open a wholesale account, see bulk tire export, or request container pricing →
Frequently asked questions
What’s the difference between FOB and CIF for tire imports?
FOB puts ocean freight and insurance on you; CIF includes them to your destination port. Both still leave import clearance and duty to you.
What does DDP mean for a tire buyer?
Delivered Duty Paid — the seller covers everything including import duty, giving you an all-in landed price to your door.
Why is an FOB quote cheaper?
Because it excludes freight, insurance, clearance, and duty. Convert to landed cost before comparing to a DDP quote.