When you import bulk bay leaves, the Incoterm you choose decides who carries the cost and the risk at every step between the Turkish warehouse and your U.S. dock. The two terms most buyers compare are DDP (Delivered Duty Paid) and FOB (Free On Board). Picking the right one is not about which is "cheaper" — it is about how much logistics work you want to own.
What the two terms actually mean
FOB (Free On Board) means the supplier delivers the goods, cleared for export, onto the vessel at the origin port. From that moment, ocean freight, insurance, U.S. customs clearance, duties, and inland trucking are your responsibility. You — or your freight forwarder and customs broker — manage everything from the deck of the ship onward.
DDP (Delivered Duty Paid) is the opposite end of the spectrum. The supplier delivers the goods all the way to your named destination — your warehouse — with export documentation, ocean freight, U.S. customs clearance, and import duties already handled. You take delivery and unload. Nothing else.
The landed-cost illusion
The single biggest mistake buyers make is comparing an FOB price against a DDP price as if they describe the same thing. They do not.
An FOB price is a partial cost. To compare it honestly with DDP, you have to add:
- Ocean freight from origin port to U.S. port
- Marine insurance
- U.S. customs entry and brokerage fees
- Import duties and any applicable fees
- Drayage and inland trucking to your warehouse
- Demurrage risk if clearance is slow
Stack those onto an FOB number and the true landed cost usually lands close to a DDP quote. DDP simply hands you that total up front as a single figure you can drop straight into your cost model.
| Cost leg | FOB (you own) | DDP (supplier owns) | | --- | --- | --- | | Export clearance & loading | Supplier | Supplier | | Ocean freight & insurance | You | Supplier | | U.S. customs clearance | You | Supplier | | Import duties | You | Supplier | | Inland delivery | You | Supplier | | Demurrage / delay risk | You | Supplier |
Risk, not just money
Incoterms allocate risk as well as cost. On FOB, a slow customs clearance, a misclassified entry, or an unexpected hold becomes your problem — and your demurrage bill. On DDP, that exposure sits with the supplier, who has every incentive to keep the documentation clean and the container moving.
For shelf-stable agricultural goods like dried bay leaf, the paperwork chain — commercial invoice, packing list, certificate of origin, and any required food-safety documentation — has to be consistent end to end. A DDP arrangement keeps that chain under one roof.
When FOB makes sense
FOB is the right call when you already have import muscle: a customs broker you trust, a freight forwarder with good origin coverage, and the volume to negotiate your own ocean rates. In that situation, owning the freight and clearance can shave cost and give you scheduling control. Many established spice importers run FOB for exactly this reason.
When DDP makes sense
DDP is the cleaner path when you want a delivered number you can compare against your target cost without becoming a logistics department. It is especially attractive for:
- First-time importers without a customs broker
- Buyers who want predictable, all-in pricing
- Programs where the leaf has to arrive on a reliable date with no clearance surprises
Through Bay Leaves Co., you order from Tuna Project LLC (Florida), and Tuna Project manages the DDP chain from İzmir to your warehouse — export documents, freight, U.S. clearance, and duties — so you receive bulk bay leaf with the duty already paid.
How to decide
Ask three questions: Do I have a customs broker and forwarder ready? Do I have the volume to negotiate competitive freight? Do I want to own clearance risk? Three "yes" answers point to FOB. Any "no" usually points to DDP.
Either way, request both quotes for your first container. Comparing a real FOB-plus-your-costs estimate against a firm DDP number is the only way to see your true landed cost — and to choose the term that fits how your business actually runs.
Want both numbers for your volume and destination? Request a quote and we will prepare DDP and FOB options side by side.