FOB / CIF / DDP

FOB (Free On Board), CIF (Cost, Insurance, and Freight), and DDP (Delivered Duty Paid) are international shipping terms, also known as Incoterms, that define the responsibilities, risks, and costs between buyers and sellers during the transportation of goods. Each term specifies who is responsible for freight, insurance, customs clearance, and delivery to the final destination.

At Megaya Bali, understanding and offering FOB, CIF, and DDP options ensures that our clients can plan shipments according to their logistics preferences and risk tolerance.

Why It’s Important
Choosing the right shipping term is crucial because it:
– Defines financial responsibility for transportation, insurance, and customs duties

– Clarifies risk transfer from seller to buyer at different stages of shipment

– Impacts total landed cost, helping brands accurately budget for shipping and import fees

– Affects logistics planning, including carrier selection, documentation, and timeline management

– Ensures smooth international transactions by preventing miscommunication between buyer and seller

– Supports compliance with customs regulations, reducing delays and penalties

Incorrect selection or misunderstanding of shipping terms can lead to unexpected costs, delivery delays, or disputes between the manufacturer and the brand.

How FOB / CIF / DDP Works at Megaya Bali
Megaya Bali provides guidance and execution for each Incoterm to ensure clarity, reliability, and professional handling of shipments.
1. FOB – Free On Board
Megaya Bali is responsible for delivering goods to the port of shipment and clearing them for export.
The buyer assumes responsibility once the goods are loaded onto the vessel, including freight, insurance, and destination customs.
Ideal for brands who want control over their shipping process and freight selection.

2. CIF – Cost, Insurance, and Freight
Megaya Bali arranges transportation and insurance up to the port of destination.
Risk transfers to the buyer once goods arrive at the destination port, but Megaya Bali covers insurance and freight costs during transit.
Recommended for clients who prefer insurance coverage and simplified coordination while maintaining responsibility after arrival.

3. DDP – Delivered Duty Paid
Megaya Bali takes full responsibility for delivering goods to the buyer’s specified location, including freight, insurance, import clearance, and taxes.
Buyer receives shipment ready to use or sell, with minimal involvement in customs or logistics.
Best for brands who want a fully managed and hassle-free shipping experience.

Megaya Key Advantages for FOB / CIF / DDP
Megaya Bali supports all three shipping terms with professional guidance and accurate execution:
– Flexibility: Clients can choose terms based on budget, risk preference, and logistics capabilities

– Clear Documentation: All shipping papers, invoices, and customs forms are prepared according to the chosen Incoterm

– Professional Logistics Coordination: Megaya liaises with carriers, freight forwarders, and customs brokers

– Risk Management: Responsibilities and risk transfer are clearly defined to prevent disputes

– Customs Compliance: Ensures accurate duties, taxes, and HS Code application

– Transparent Costing: Clients know their landed cost upfront, including freight, insurance, and duties

– Smooth International Delivery: Supports timely and safe arrival at the destination

– Client Confidence: Brands can focus on sales and marketing while Megaya Bali manages logistics

At Megaya Bali, FOB, CIF, and DDP are not just shipping terms—they are part of our commitment to providing professional, reliable, and hassle-free export services. By managing responsibilities and risks carefully, we ensure that every shipment arrives safely, on time, and in compliance with international standards.