What is CIF?
CIF (Cost, Insurance and Freight) means the seller is responsible for delivering goods to the destination port, covering cargo cost, ocean freight, and marine insurance. Risk transfer point: Risk transfers to the buyer once goods are loaded onto the ship. The buyer handles destination clearance, duties, VAT, and port-to-warehouse transport.
What is DDP?
DDP (Delivered Duty Paid) means the seller bears all costs and risks until goods reach the buyer's specified location: cargo cost, ocean freight, insurance, destination clearance, duties, VAT, and inland delivery. Risk transfer point: Risk transfers only after delivery to the buyer's door.
CIF vs DDP Comparison
| Aspect | CIF | DDP |
|---|---|---|
| Seller Responsibility | To destination port | To buyer's door |
| Clearance Responsibility | Buyer | Seller |
| Duties/VAT | Buyer pays | Seller pays |
| Risk Transfer | At loading | At delivery |
| Seller's Quote | Lower (excl. destination costs) | Higher (all-inclusive) |
| Buyer's Work | Arrange clearance & delivery | Wait for delivery |
Which to Choose?
Choose CIF when:
- Buyer has import qualifications and EORI number in Spain
- Buyer has a customs broker
- Buyer wants to control destination costs
- Seller is unfamiliar with Spanish customs
Choose DDP when:
- Buyer has no import experience and wants one-stop service
- Buyer doesn't have an EORI number
- Seller wants to offer a better buying experience
- Small shipments where buyer doesn't want to deal with clearance