THE PURCHASING QUESTION
The reality
Under EXW, delivery generally means making goods available at the named place, without loading the collecting vehicle or clearing export customs. Under FOB, the seller delivers on board at the named shipment port and handles export clearance; the buyer arranges main carriage.
Under CIF, the seller pays freight and required insurance to the named destination port, but risk transfers on board at origin—not upon arrival. CIF does not mean duty-paid delivery to your warehouse. FOB and CIF concern sea or inland-waterway transport; FCA or another suitable rule may better fit container-terminal handovers. Incoterms® rules do not replace product, payment or ownership terms.
QUICK REFERENCE
Separate payment of costs from transfer of risk
| Confirm | What to record or distinguish |
|---|---|
| EXW · named place | Generally goods made available at the named place, without loading the collecting vehicle or export clearance. Confirm the actual collection arrangement. |
| FOB · shipment port | Seller delivers on board and handles export clearance; buyer arranges main carriage. Risk transfers on board at origin. |
| CIF · destination port | Seller pays the stated freight and required insurance to the destination port; risk still transfers on board at origin, not on arrival. |
| Compare the whole route | List remaining destination charges, import clearance and final delivery separately. Confirm the named place, applicable rule and edition for the actual transport. |
BEFORE YOU ORDER
Three checks before ordering.
Write the rule, precise named place or port and edition: for example, FOB Qingdao, Incoterms® 2020. Confirm suitability for the actual transport arrangement.
List origin handling, main carriage, insurance, destination charges, import clearance, duties, taxes and final delivery. Confirm who pays each item and any unresolved charges.
Check the risk-transfer point and insurance scope separately. Obtain route-specific estimates from the forwarder or broker rather than treating a supplier’s subtotal as landed cost.
PUTTING IT INTO PRACTICE
What HEHE coordinates.
HEHE makes the quoted delivery scope and remaining buyer responsibilities explicit when coordinating an export order. Freight estimates are tied to the proposed route and packed cargo. Local duties and taxes require the correct classification, destination and current rules; we do not publish a universal tax-inclusive saving.
Read the practical shipping questions