Incoterms
CIF Vs. EXW Vs.FOB Incoterms: Differences
By ONI Shopfitting
Table of Contents
CIP vs. CPT Incoterms: What is the Difference?
CIF vs. EXW vs. FOB Incoterms: What Is the Difference?
Dear Valued Customer,
Greetings! Thank you for your trust and support in our products. As we move into the logistics stage of our cooperation, we would like to help you make the most worry-free, efficient, and cost-optimized choice. Below is a detailed explanation of the three most commonly used Incoterms — EXW, FOB, and CIF — including key differences, responsibility allocation, and recommended scenarios for your reference.
I. Responsibilities & Process Breakdown of the Three Incoterms
1) EXW (Ex Works)
Responsibility boundary: Once the goods are ready at our factory warehouse, all subsequent steps are fully handled by you.
Process: You will need to appoint your own forwarder to arrange pickup from our factory, and independently manage domestic transportation, export customs declaration/inspection, and any communication with China Customs. We provide the goods and the basic ex-factory documents only.
Key features: You need to coordinate the entire China-side logistics and export procedures, and should be familiar with local policies and customs processes.
2) FOB (Free On Board)
Responsibility boundary: We transport the goods from our factory to the designated port and complete all export procedures (customs declaration/inspection and export compliance). Once the goods are loaded on board, responsibility transfers to you.
Process: We manage China domestic transportation and export formalities. You will need to appoint your overseas forwarder in advance, and after shipment you will handle ocean freight arrangements and destination port customs clearance.
Key features: You do not need to worry about China export procedures, but you will need to coordinate international shipping resources and ensure smooth clearance and delivery arrangements at destination.
3) CIF (Cost, Insurance & Freight) — Recommended
Responsibility boundary: We manage the full process from factory pickup, domestic transportation (factory to Guangzhou/Guanghai port), export customs declaration/inspection, and international ocean freight to your designated overseas port, including insurance. After the cargo arrives at the destination port, you only need to handle local customs clearance and onward arrangements.
Process:
We coordinate with reliable China forwarders for factory pickup and port transportation;
With our export experience, we efficiently handle customs declaration/inspection to ensure smooth export clearance;
We arrange ocean freight and track the shipment throughout;
We proactively coordinate with your nominated local forwarder and provide the full set of clearance documents in advance (B/L, commercial invoice, packing list, certificate of origin, etc.) to facilitate your import clearance.
Key features: You can focus only on destination customs clearance, without getting involved in complex China domestic logistics and export compliance procedures — efficient and hassle-free.
II. Key Advantages Comparison (EXW vs. FOB vs. CIF)
| Comparison Item | EXW | FOB | CIF (Recommended) |
|---|---|---|---|
| Operational Complexit | High (you coordinate everything) | Medium (you manage international freight) | Low (we manage most steps) |
| Export Compliance Assurance | Depends on your expertise | China-side compliance ensured by us | End-to-end compliance support (strong familiarity with China customs) |
| Logistics Cost Control | You control it, but costs may rise if unfamiliar with the market | China-side cost fixed; ocean freight negotiated by you | Bundled China + ocean freight with stronger rate advantages via our forwarder resources |
| Risk Level | High (China transport & export risks on your side) | Medium (China risks on us; international leg on you) | Low (we manage major China + ocean leg risks; early document coordination reduces downstream risk) |
III. Our Core Recommendation: Prioritize CIF Terms
Based on our years of export experience, we strongly recommend choosing CIF, for the following reasons:
Stronger compliance and smoother export:
Our China-side forwarders are highly experienced with China customs policies and declaration procedures. This helps avoid delays or cargo holds caused by unfamiliarity with export requirements, ensuring the shipment departs China smoothly.More economical total logistics cost:
With long-term partnerships with forwarders and carriers, we have stable capacity and better bargaining power. In many cases, the bundled domestic transportation + ocean freight cost is more competitive than fragmented quotes arranged independently.More convenient, less workload for you:
You do not need to spend time coordinating China domestic transport and export declaration procedures. After the cargo arrives at your destination port, you simply work with your local forwarder for import customs clearance. We will provide all required documents in advance to ensure seamless coordination.More comprehensive risk control:
From factory pickup to port arrival, we track and manage the shipment end-to-end. If any unexpected issues occur (e.g., customs inspection, document adjustment, schedule changes), we can coordinate promptly and reduce the impact—avoiding delays caused by cross-border communication challenges.
IV. Next Steps & Our Support
If you choose CIF, we will:
Confirm your destination port in advance and provide a detailed cost breakdown;
Keep you updated with shipment tracking so you can follow cargo status in real time;
Send the full set of clearance documents to you and your nominated local forwarder within 24 hours after loading, so you can prepare for customs clearance early.
If you have special reasons to consider FOB or EXW, we will fully support your preference. However, please note:
Under FOB, the international forwarder details should be confirmed in advance to ensure smooth vessel booking and handover.
Under EXW, you will assume full responsibility and risk for China domestic transport and export declaration. We strongly recommend appointing a professional China-based forwarder if you are not familiar with the procedures.
The choice of Incoterms directly impacts shipment smoothness and overall cost control. We always prioritize your benefits and recommend the most suitable solution. If you have any questions about the above, or would like advice based on your destination market and experience level, please feel free to contact us anytime—we are happy to support you with tailored guidance.
We look forward to a successful cooperation with you!
Best regards,
GuangZhou ONI Shopfitting Litimed
Tel / Whatsapp : +86 18620963396(CICI Tang)
Email:sales1@onishopfitting.com
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