Guide
DDP vs. FOB for Custom Pins: Which Term Protects You?
DDP puts duty, freight and delivery on the factory; FOB puts them on you. Which protects a pin buyer depends on your broker and the control you need.
DDP protects a buyer who wants one price and nothing to pay on arrival: we carry freight, duty, brokerage and delivery risk to your door. FOB protects a buyer who has a forwarder and a broker and wants control of routing and cost. For a first custom pin order without an import setup, DDP is the safer term. For repeat volume with your own logistics, FOB is usually cheaper.
What the terms mean (Incoterms 2020)
- FOB Shenzhen (Free On Board). We deliver the cartons onto the vessel or, in practice for air, to the carrier at the named port. From that point, freight, insurance, import duty, VAT or sales tax, brokerage and delivery are yours. Risk passes when the goods are on board.
- DDP your address (Delivered Duty Paid). We deliver to your door with all export and import charges paid, including duty. Risk passes at your door. You do nothing except sign.
- Between them sit CIF/CIP (we pay freight and insurance to the port; you clear customs) and DAP (we deliver to your door; you pay duty).
Where responsibility sits
| Item | FOB | CIF / CIP | DAP | DDP |
|---|---|---|---|---|
| Export clearance in China | Factory | Factory | Factory | Factory |
| International freight | Buyer | Factory | Factory | Factory |
| Cargo insurance | Buyer | Factory | Buyer (optional) | Factory |
| Import duty | Buyer | Buyer | Buyer | Factory |
| Import VAT / sales tax | Buyer | Buyer | Buyer | Factory |
| Customs brokerage | Buyer | Buyer | Buyer | Factory |
| Delivery to door | Buyer | Buyer | Factory | Factory |
| Risk transfer point | On board at origin | On board at origin | At your door | At your door |
What DDP protects you from
- Surprise customs bills. US duty on pins is about 31% as of September 2026 (HS 7117.19.90: 11% MFN plus 7.5% and 12.5% Section 301); UK is 4% duty plus 20% VAT; EU is 4% plus VAT; Canada 8.5% plus GST/HST; Australia 0% under ChAFTA plus 10% GST. All subject to change. Under DDP these are inside the quote.
- Broker setup. No need to appoint a customs broker, register as importer or post a bond.
- Held shipments. If paperwork is wrong, it is our forwarder's problem to fix.
- Rate changes. If duty changes between quote and dispatch, we tell you and re-issue the DDP line before shipping. You are not billed after the fact.
What FOB protects you from
- Paying a margin on freight and duty. Under DDP the factory or its forwarder prices in a buffer for the unknown. Under FOB you pay actual cost.
- Losing control of the carrier. Your forwarder, your schedule, your consolidation with other suppliers.
- Being tied to one delivery address. You can route to a 3PL, a distributor or a trade show.
- Import VAT recovery. A VAT-registered buyer in the UK or EU is the importer of record under FOB and reclaims import VAT in the normal way. Under DDP, ask how the import is documented before assuming reclaim is possible.
What neither term covers
- Product compliance. Nickel release (REACH Annex XVII entry 27), lead (entry 63), cadmium (entry 23) and the EU GPSR Responsible Person requirement (Regulation 2023/988) are the seller's or importer's obligation regardless of Incoterm. Ask for test reports with the quote.
- Country of origin marking. "Made in China" on the pin or packaging is required under either term.
- Payment. T/T, PayPal or credit card under either term; first orders normally 100% in advance.
Which to choose
| Your situation | Choose | Why |
|---|---|---|
| First order, no broker, one address | DDP | One price, nothing on arrival |
| Event with a fixed date | DDP by air | Held shipment is our problem, not yours |
| Repeat orders, own forwarder | FOB | Actual freight and duty cost; your routing |
| Consolidating with other suppliers | FOB | Your forwarder collects from several factories |
| VAT-registered, want to reclaim | FOB or DAP | You are importer of record |
| Delivery to a 3PL or fulfillment house | DAP or FOB | 3PL often has its own broker |
How we quote both
Ask for FOB and DDP on the same order. The DDP line shows freight, insurance, duty and delivery as one figure with the Incoterm and address stated. Compare the gap with what your own forwarder would charge plus the duty rate. Enamel pin options are on the custom enamel pins page.
This is general guidance, not legal advice.
Order Facts
- From 100 pcs per design · better price at 500+, best at 1,000+
- Free artwork proof within 2 working days
- Sample 10–14 working days · bulk 30–60 days · rush from 10–15 days
- DDP door-to-door available: duties and taxes included in the quote
- Bella replies within 12 hours
Related
Frequently Asked Questions
Is DDP always more expensive?
Usually, by the buffer built into it. On a small first order the difference is often smaller than a broker's minimum fee. On large repeat orders FOB wins.
Can you quote DDP to every country?
To most. Some destinations have import rules that require a local importer of record, in which case we quote DAP and explain what you need to do.
What if the pins are damaged in transit under FOB?
Risk passed on board, so the claim is against the carrier or your insurance. Under DDP the claim is ours to make; you receive replacements.