Garment Delivery, and Logistics
Sam and Sven corporation originated in Portland, Oregon. It was created in 2014 and specializes in sales and service. We are an apparel sourcing company with full service, known for connecting clients with supreme quality, cost-competitive, and reputable factories. Our extensive network of suppliers based in China, Vietnam, India, Cambodia, and Sri Lanka allows apparel sourcing to accommodate any clothing. We offer manufacturing solutions for companies getting started as industry leaders and have a passion for making the best-in-class apparel with over a decade of experience.
This includes high-performance athletic, outdoor, and lifestyle apparel for all ages and genders. After garment production is finished, we will make sure that your products get from the factory to your site or your warehouse on time.
Free on Board (FOB)
Free on Board, or FOB for short, is defined as the term used to describe the person (whether that be the buyer or the seller) liable for goods that may get damaged or destroyed during the shipping process as well as the transfer of liability and ownership of goods from a seller to a buyer.
Additionally, a shipment designated FOB Origin is essentially owned by the buyer/consignee at the time of its shipment. In other words, the consignee would not accept delivery of goods it legally owns and takes the risk for.
Cost Insurance and Freight (CIF)
In Cost Insurance and Freight (CIF), the seller pays costs and takes liability until the goods reach the port of destination picked by the buyer. It is an international shipping agreement and only applies to goods that get transported through means of a body of water such as a lake or an ocean. Even though this was originally how Free on Board (FOB) started off, CIF still holds true to this value even today and does not include any other types of transportation such as those on land and air.
The goods are exported to the buyer’s port named in the sales contract. Furthermore, if the product requires additional customs duties, export paperwork, or inspections or rerouting, these expenses must be paid by the seller. However, once the goods arrive at the buyers port of destination, the buyer gains responsibility for any fees or charges for unloading and delivering the shipment to the final destination. This payment method is arguably much cheaper than FOB because buyers have more control over the shipping logistics, including insurance and transport costs and are able to sign with a shipper they want, taking as much coverage as they see fit to insure their shipments.
Delivery Duty Paid (DDP)
Delivery Duty Paid (DDP) places the most of the responsibility on the seller’s shoulders and the least amount on the buyer’s. As a result, the seller is now in charge of both shipping the products and covering the customs and taxes incurred during importation. The benefits of DDP for purchasers include lesser risk (the seller assumes responsibility for transit to destination), knowledge of the landing costs at the time of purchase, and lack of administrative hassles linked to supply chain management or setting up vendor payments.
These can include expenses such as shipping, duty, delivery, insurance, and customs clearance costs. This is in contrast to Free on Board (FOB), where it involves the price a brand pays to a supplier before including shipping and import fees and Cost Insurance and Freight (CIF), where the seller pays costs and takes liability until the goods reach the port of destination picked by the buyer.
Getting familiar with DDP is important as it helps customers get a better idea of their cost of production and helps them to compare the cost of manufacturing products in different regions and overseas. The DDP often helps businesses by allowing them tocompare to the Free on Board (FOB) price, meaning that they can see the breakdown of the cost of manufacturing versus the shipping, duty and taxes to import or accept their manufactured goods. In other words, DDP must be calculated in order to make sure whether or not a sale price quoted to the customers is actually profitable.