What is the difference between EXW, FOB, and CIF prices from a Chinese exporter, and which incoterm should I choose as a first-time buyer?
EXW means you pay only for the car at the seller's yard—you handle everything else, including inland transport in China and export clearance, which is impractical from overseas. FOB includes delivery to the port and export customs clearance; you pay for ocean freight and insurance. CIF adds freight and basic insurance to a named destination port. For a first-time buyer, FOB is usually the best balance: the exporter, who knows Chinese logistics, handles the complicated part, while you control the freight booking and can shop rates among forwarders. Watch for exporters quoting unrealistically low FOB prices and making margin on inflated 'shipping services' later. Get a separate freight quote before signing, and compare the exporter's CIF offer against FOB plus your own freight estimate. Ask explicitly whether the price includes inspection, export license fees, and port charges—ambiguity here is the most common source of disputes.
















