Incoterms
Frequently Asked Questions on the Selection of Trade Terms
By ONI Shopfitting
Table of Contents
CIP vs. CPT Incoterms: What is the Difference?
Frequently Asked Questions on the Selection of Trade Terms
To address your potential concerns about trade term selection and cooperation processes, we have compiled the following common questions and answers:
1. What is the scope of marine insurance under CIF terms?
The comprehensive marine insurance we purchase covers all risks during domestic transportation and international ocean shipping, including damage caused by natural disasters (storms, earthquakes, floods), accidents (collisions, groundings, fires), theft, and non-delivery. The insured amount is 110% of the product value, which can fully cover your potential losses (including freight and customs duties at the destination port). If you need to expand the insurance coverage (e.g., add war risk or strike risk), we can customize the insurance plan for you at a preferential price.
2. Can I change the destination port after confirming the CIF order?
Yes, but we recommend notifying us at least 5 working days before the goods are loaded on board. Changing the port within this period will only involve adjusting the ocean freight difference (if any); no additional service fees will be charged. If the notice is given after loading, in addition to the freight difference, you need to bear the costs of vessel rerouting and document reissuance (usually $200–$500, depending on the shipping company’s regulations).
3. How do you handle the transportation of special goods (e.g., large-size display cabinets, fragile glass products)?
For special goods such as large display cabinets and fragile items, we will take targeted protective measures:
- Packaging reinforcement: Use thickened wooden pallets, anti-collision foam, and corner protectors to prevent deformation or damage during transportation.
- Customized loading plans: For oversized display cabinets, we will arrange flat-rack containers or open-top containers, and coordinate with the port to use professional lifting equipment for loading and unloading.
- Special declaration: We will clearly mark the goods as “fragile” and “handle with care” on the shipping documents and outer packaging, and communicate with the shipping company in advance to ensure gentle handling throughout the process.
4. How can I obtain a detailed cost breakdown for CIF terms?
After you confirm the order quantity, product specifications, and destination port, we will provide you with a transparent cost breakdown sheet within 2 working days. The sheet includes specific amounts for domestic transportation fees, customs clearance fees, ocean freight, marine insurance premiums, and document processing fees—no hidden charges. You can verify each cost item with third-party logistics companies at any time.
5. If I choose FOB terms, who will bear the cost of port storage if the vessel is delayed?
If the vessel delay is caused by your designated overseas freight forwarder (e.g., failure to confirm the vessel schedule in a timely manner), the additional port storage fees (calculated at $100–$300 per container per day) will be borne by you. If the delay is due to our failure to deliver the goods to the port on time, we will fully bear the storage costs and compensate you for the resulting losses (e.g., delayed sales).
6. Do you provide support for EXW/FOB orders if I have special requirements?
Yes. Even if you choose EXW or FOB terms, we can provide value-added services such as:
- Assisting you in verifying the qualifications of your appointed domestic freight forwarder.
- Providing free packing guidance and factory loading assistance.
Offering professional advice on HS code classification and export document preparation (free of charge for long-term clients）
Special Reminders for Display Cabinet Export (Tailored to Your Business Scenario)
As a professional display cabinet exporter, we understand that your products have unique characteristics such as large size, irregular shape, and high requirements for surface protection. Based on years of experience, we would like to share the following key points:
- Packaging standardization: For display cabinets exported by sea, we recommend using seaworthy packaging(moisture-proof film + bubble wrap + wooden frame) to prevent moisture damage and collision during long-distance transportation. This packaging standard is mandatory for CIF orders to ensure cargo safety.
- Size confirmation: Before confirming the trade term, please provide the exact size and weight of the display cabinet. We will optimize the container loading plan (e.g., 合理搭配不同规格展柜实现整柜最大化装载) to reduce your unit transportation cost.
- Destination port requirements: Some countries (e.g., the United States, Australia, the European Union) have strict regulations on wooden packaging. For CIF orders, we will automatically arrange fumigation and disinfectionof the wooden frame and provide a fumigation certificate to ensure smooth customs clearance at the destination port.
Contact Us
If you have any further questions about trade terms, logistics plans, or cost calculations, please feel free to contact our dedicated logistics team at any time:
- Logistics Coordinator: Victor
- Email: sales6@onishopfitting.com
- Phone/WhatsApp: +86 18126870150
- Working Hours: Monday–Friday, 9:00 AM–6:00 PM (GMT+8)
We will reply to your inquiry within 2 working hours and provide you with a personalized logistics solution based on your specific order requirements.
Appendix: Key Document Checklist for Export
To help you understand the document requirements for different trade terms, we have sorted out the key document list as follows:
Trade Term | Documents Provided by Us | Documents to Be Prepared by You |
EXW | Commercial Invoice, Packing List, Factory Inspection Report | Customs Declaration Form, Certificate of Origin, Marine Insurance Policy, Bill of Lading |
FOB | Commercial Invoice, Packing List, Certificate of Origin, Customs Clearance Documents, Loading Confirmation | Bill of Lading, Marine Insurance Policy |
CIF | Commercial Invoice, Packing List, Certificate of Origin, Customs Clearance Documents, Bill of Lading, Marine Insurance Policy | None (we will send all documents to your local freight forwarder in advance) |
This document has been fully completed, covering all aspects from trade term details, advantage comparison, recommendation justification to FAQ, industry-specific reminders and contact information. If you need to adjust the content for specific target markets (e.g., add customs clearance regulations for the Middle East or Southeast Asia) or translate the appendix into multiple languages, I can further optimize it for you.
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