FOB vs CIF in Export Quotes: Shipping Terms for Auto Parts
Common Incoterms
EXW (Ex Works)
- Seller delivers at factory
- Buyer arranges all freight, customs, insurance
- Lowest risk, simplest quote
FOB (Free On Board)
- Seller delivers to named port and loads
- Buyer pays ocean freight and insurance
- Most common for China export, good for first deals
CIF (Cost, Insurance, Freight)
- Seller covers freight and insurance to destination port
- All-in price, convenient but higher
- For mature partnerships
How to Choose
- First deals: FOB for clear responsibility
- Small high-value: CIF as service
- Confirm packaging, marks, documents before quoting
Tip
Always write the cost split point in the contract. Huami quotes FOB/CIF as requested.