CIF vs. FOB vs. DDP When Importing Golf Carts from China
In international shipping and trade, Incoterms (International Commercial Terms) like DDP, FOB, and CIF are commonly used to specify the responsibilities of buyers and sellers for the delivery of goods. Here is an explanation of each term in the context of importing golf carts from China to the USA:
DDP (Delivered Duty Paid):
Seller's Responsibility: The seller is responsible for all costs and risks involved in delivering the golf carts to the final destination in the USA, including export and import duties, taxes, and customs clearance.
Buyer's Responsibility: The buyer is only responsible for receiving the goods at the final destination.
Best For: Buyers who prefer not to deal with the complexities of international shipping and customs.
FOB (Free On Board):
Seller's Responsibility: The seller is responsible for delivering the golf carts onto the ship at the port of shipment in China. This includes export customs clearance and costs up to loading the goods on the vessel.
Buyer's Responsibility: The buyer takes over responsibility once the golf carts are loaded onto the ship, including ocean freight, insurance, unloading at the port of destination, import duties, taxes, and inland transportation to the final destination.
Best For: Buyers who have experience with international shipping and want control over the shipping process and costs from the point of shipment.
CIF (Cost, Insurance, and Freight):
Seller's Responsibility: The seller is responsible for the cost of the golf carts, insurance, and freight to the port of destination in the USA. This includes export customs clearance, ocean freight, and insurance.
Buyer's Responsibility: The buyer is responsible for unloading the golf carts at the port of destination, import duties, taxes, and inland transportation to the final destination.
Best For: Buyers who want the seller to handle the main shipping costs and insurance but are comfortable handling the remaining steps of the import process.
Below is an example breakdown of costs for importing a golf cart costing $6,000 from China to the USA under each of the three Incoterms (DDP, FOB, CIF). The actual costs can vary based on specific logistics providers, shipping routes, and current market rates, but we provided a general approximation.
DDP (Delivered Duty Paid)
Base Cost:
Golf Cart: $6,000
Additional Costs Covered by Seller:
Export Duties and Taxes: $200
Transportation to Port in China: $100
Loading onto Ship: $50
Ocean Freight (40% increase): $1,400 (previously $1,000)
Insurance (40% increase): $70 (previously $50)
Unloading at Port in USA: $200
Import Duties and Taxes (assuming 5%): $300
Inland Transportation to Final Destination in USA: $500
Customs Clearance in USA: $100
Total Cost to Buyer (all-inclusive): $6,000 (base cost) + $2,940 (additional costs) = $8,940
FOB (Free On Board)
Base Cost:
Golf Cart: $6,000
Additional Costs Covered by Seller:
Export Duties and Taxes: $200
Transportation to Port in China: $100
Loading onto Ship: $50
Additional Costs Covered by Buyer:
Ocean Freight (40% increase): $1,400 (previously $1,000)
Insurance (40% increase): $70 (previously $50)
Unloading at Port in USA: $200
Import Duties and Taxes (assuming 5%): $300
Inland Transportation to Final Destination in USA: $500
Customs Clearance in USA: $100
Total Cost to Buyer: $6,000 (base cost) + $2,570 (additional buyer costs) = $8,570
CIF (Cost, Insurance, and Freight)
Base Cost:
Golf Cart: $6,000
Additional Costs Covered by Seller:
Export Duties and Taxes: $200
Transportation to Port in China: $100
Loading onto Ship: $50
Ocean Freight (40% increase): $1,400 (previously $1,000)
Insurance (40% increase): $70 (previously $50)
Additional Costs Covered by Buyer:
Unloading at Port in USA: $200
Import Duties and Taxes (assuming 5%): $300
Inland Transportation to Final Destination in USA: $500
Customs Clearance in USA: $100
Total Cost to Buyer: $6,000 (base cost) + $1,370 (additional buyer costs) = $7,370
Summary of Total Costs
DDP: $8,940
FOB: $8,570
CIF: $7,370
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Powerful and Efficient Electric Motor: Our AC Electric Motor is rated at 5,000 watts (7500W available), providing ample power for any terrain. It is also energy-efficient, allowing for longer driving ranges between charges.
Extra Long-Lasting Battery: Our golf carts come with a standard 48V battery consisting of 4 deep cycle batteries (Lithium 60V & 72V options available). This provides a driving range of up to 45 miles on a single charge, making it perfect for those long days on the course and beyond.
Lightning Fast Charging for Uninterrupted Playtime: Charge your 4 or 6 passenger electric MMC golf cart overnight, and it’s ready in just 5.5 hours using a standard 120V charging port.
Smooth Ride Guaranteed Suspension: Our golf carts come with an independent MacPherson strut suspension in the front and a swing arm straight axle in the rear, providing a smooth and comfortable ride (double swing arm and independent front suspension available). This feature ensures that you stay comfortable on any terrain, including bumpy or uneven surfaces.
Sleek and Modern Style Design: Our electric golf carts come in a variety of colors, including Blue, Black, Red, Silver, Matte Black, White, Purple, and more. Coupled with aluminum wheels, our electric off road golf carts exude a modern charm.
Spacious and Comfortable Seating: Our 4 or 6 person electric golf carts feature spacious and comfortable seats with plenty of legroom and headroom. This makes it easy to transport a group of friends or family members in style and comfort.
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Two-Year Limited Warranty: Your peace of mind is our priority. That’s why we back our off road golf carts with a two-year limited warranty and and an 6-year warranty on Lithium batteries (2 years full replacement value, and 4 years prorated).
FAQs
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Known as the “Tesla of Golf Carts”, MMC is located in Oklahoma City, OK (USA). MMC is specialized in electric innovation, such as electric golf carts, electric UTVs, electric bikes, and rechargeable lithium batteries, etc.
MMC was established with a vision to offer consumers unparalleled value at an unbeatable price point. The multi-generational team began manufacturing parts for EZ-GO and Yamaha in the 1990s, accumulating extensive expertise in golf cart production. Dubbed the "Tesla" of Golf Carts, this approach has propelled MMC into becoming one of the pioneering manufacturers in the United States and beyond. -
By owning our factories, we ensure rapid shipments, swift enhancements, and unwavering support. We have a direct hand in every aspect, adeptly meeting the diverse requirements of our clients. Check our latest pricing.
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Most MMC M40 electric golf carts can travel between 40 to 45 miles on a single full charge depending on the model, terrain, and battery capacity. Read this article for more details.
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The time-frame for delivery is typically about 2-4 weeks after purchase if you’re located in the United States and Canada. Our dedicated customer support team will send you weekly updates for delivery. Fell free to send us a message anytime.
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Based in Oklahoma City, Oklahoma (USA), we keep a stock of over 200 pieces for each cart part. Be it for service, orders, or customization, our dealerships can expect parts to reach them within 3-5 days
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With warehouses in Oklahoma City, OK; Tempa, FL; and our latest addition in Oceanside, CA, we offer unparalleled service support. Whether it's parts or technical issues, our customers can count on timely assistance.
