Most “FOB to DDP” calculators multiply a duty rate by an FOB value and stop. That misses freight, insurance, duty on freight, VAT on duty, statutory fees and the local charges after the container lands. This page explains the stack and lets you run your own shipment.
FOB is not DDP
Under FOB, the supplier’s cost responsibility generally ends when goods are on board at the origin port. Under DDP, the seller agrees to deliver cleared goods at the destination, including import duty and taxes.
The difference includes main freight, insurance, customs clearance, duty, VAT, port handling, inland delivery and the cost of being the importer of record. Some of those costs scale with value; others are fixed per shipment.
- FOB + duty is not a landed cost.
- DDP can include costs that are not visible in the price.
- A DDP quote still needs a correct entry and importer-of-record arrangement.
The stack, in order
Start with FOB. Add freight and insurance to reach a CIF planning base. Apply duty and any trade measures. Apply VAT to the CIF plus duty base. Add statutory fees, clearance, port, inland and documentation. That is the planning landed cost.
The order matters. Applying VAT to FOB before duty understates the cash due. Adding duty to a freight-inclusive total without separating it hides the true goods cost.
- Freight is estimated by mode, volume and lane.
- Duty is a category planning rate, not a ruling.
- VAT is shown as cash due at entry.
How to use the range
The low and high cases vary freight, local charges and the duty planning band. They do not pretend that classification risk is resolved. If the high case breaks your margin, the shipment is fragile even before a broker confirms the line.
Use the expected case for a quick decision, the high case for a budget, and a verified quote before you wire a deposit.
United Arab Emirates · 100 units · FCL 40ft
| Cost line | Amount | Evidence |
|---|---|---|
| FOB goods | $20,000 | You provided |
| International freight (FCL 40ft) | $4,360 | Estimated |
| Cargo insurance | $110 | Estimated |
| Customs duty (5.0% × CIF) | $1,223 | Rule-based |
| Additional measures | $0 | None modelled |
| Import VAT / GST (5%) | $1,285 | Rule-based |
| Statutory fees | $0 | Rule-based |
| Clearance, port, inland, docs | $750 | Estimated |
| Estimated landed total | $27,728 | $277 / unit |
Sample generated with engine 2026.11.1 and data reviewed 2026-11-01. It is not a quote or a ruling.
What this page does not decide
It does not classify your goods, confirm origin, determine the customs value, promise a freight rate or replace a licensed broker. Use the sample as a planning frame, then replace each assumption with a confirmed figure.
For the full destination context, read the UAE destination file and the related guide.
Common questions
Is FOBtoDDP a DDP quote?
No. It produces an estimated DDP-style landed cost. A real DDP quote comes from a seller or forwarder who accepts the delivery and clearance obligation.
Why is VAT included if I can recover it?
It is cash due at entry. A registered business may recover it later, but the funding requirement remains.
Can I use this for a supplier negotiation?
Yes. The breakdown shows your maximum FOB for a target landed cost, which is more useful in a negotiation than a single percentage.