fashion terms

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Permalink Reply by Apparel1 on January 31, 2010 at 11:50am

LDP means Landed Duty Paid.
I believe FOBQ means Freight On Board including Quota.

For example, if you buy product from a factory in China and negotiate terms based on Landed duty paid (LDP) it means that when the factory quotes you prices it includes the freight charges to the USA and including cost of duty charges. Duty is the tarriff (tax of importing).

If the factory quote FOB terms, it means they are excluding cost of freight charges and duty into the USA. you will have to pay the freight, clearance charges, duty, etc. Basically, you would take possession of the goods from China. If it is LDP (Landed Duty Paid) or DDP (delivered duty paid), you are taking possession after it clears in the USA.

If you are purchasing based on FOB terms, it is import to note with your supplier is it FOB the factory or FOB port. In other words, do they include freight to the port of exportation. Personally, I would suggest that if you are buying FOB the price include transportation to your freight forwarder at the port.

Note: I am NOT a customs broker, customs attorney, professor, etc. Do not trust only in my examples. Be certain to consult with the factory to make sure you are clear on all terms when negotiating pricing.

Learn more about duty and customs at the customs section on Apparel Search.

Sorry can't respond regarding your machine question.

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Permalink Reply by Carla Buchanan on January 31, 2010 at 12:35pm

Thank you so much for your great answers. What does Freight on Board including quota mean?

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