FOB vs CIF: Ten Questions to Put to a Supplier Before You Order

Technical guidesPublished 07 November 2026Updated 07 November 2026

A delivery term names one party for each obligation: who declares the goods out of China, who places them on board, who contracts the carriage, who buys the policy, who pays at the far end. Most disputes in an FOB vs CIF adhesive tape shipment come from an obligation nobody named, not from the term itself. Send these ten questions to every supplier, and require the answers inside the quotation rather than in a chat message.

1. Which term, which named place, and which edition of the rules?

Ask: the exact string that will appear on the invoice and the shipping documents, port name included, plus the year of the rules.

Why: a bare abbreviation with no port cannot be enforced or compared, and the obligations changed between editions.

How we answer: we print the term, the named port or place and the edition year on the quotation, and repeat them on the documents.

2. Who books the space and who nominates the vessel?

Ask: which party's forwarder confirms the sailing, and what happens if the container is rolled.

Why: whoever books controls the schedule, the routing and the transshipment count, and the other party learns the changes second-hand.

How we answer: the booking party is stated per term, and on FOB Shenzhen the nomination is yours.

3. Where does risk transfer, in the supplier's own words?

Ask: the physical moment the goods stop being the seller's loss, described rather than abbreviated.

Why: many buyers read CIF as a delivered price, when the risk line stops at the loading port even though the freight line runs to the destination.

How we answer: our quotations carry a one-line transfer point beside the term, so the two lines are visibly separate.

4. What insurance is placed, at what level, for what sum, and where is a claim filed?

Ask: the cover class, the insured amount basis, the insurer or market, the claims venue and currency.

Why: the CIF default is a minimum cargo class at the invoice value plus ten per cent, which will not answer for every loss a tropical sea leg can produce.

How we answer: cover level and insured basis are quoted as their own line, upgraded only on written instruction.

5. What exactly does the prepaid freight include at the destination?

Ask: whether the freight covers discharge or lift-off, destination terminal handling, and the carrier's local charge schedule.

Why: prepaid freight can stop at the ship's rail on the far side, leaving the consignee with charges nobody priced.

How we answer: the inclusion list is written on the quotation; anything not listed is an open item for your broker.

6. What will the destination charges be, in writing, before arrival?

Ask: your own forwarder for a terminal, documentation, release and equipment schedule, and the supplier for whatever its booking triggers.

Why: an FOB vs CIF comparison is only honest when both sides' destination costs are on the page; ask us for a figure and the answer is quoted against destination port or address.

How we answer: we name every charge owner and leave the amount to the shipment plan.

7. Who pays demurrage and detention, and how long is the free time?

Ask: the carrier's free time at your terminal, who controls pickup once the container is discharged, and who absorbs the cost when clearance slips.

Why: that clock runs against the consignee under both terms and is set by the carrier's tariff, not by the Incoterm.

How we answer: it is listed as a buyer-side exposure among the open items, so nobody discovers it late.

8. Under DDP, who is importer of record?

Ask: which entity signs the import declaration, who pays and recovers duty and VAT, and who answers customs questions.

Why: door terms move administrative burden to the seller only where the seller can legally carry it.

How we answer: DDP is agreed per order against a full delivery address, with the importer-of-record role named before booking.

9. Under EXW, who is the Chinese exporter of record?

Ask: who makes the export declaration and who supplies the origin paperwork your broker needs.

Why: a true ex-works sale puts the export leg on the buyer's agent, which most buyers do not want.

How we answer: we quote EXW, FOB Shenzhen, CIF or DDP by agreement, and state which clearance steps each one assigns.

10. What triggers a re-quote after the term is agreed?

Ask: what happens when the destination changes, groupage becomes a full container, or one order splits across two sites.

Why: the term is priced against a plan, so a changed plan changes the obligations, and an unmanaged revision is how a signed price becomes an argument.

How we answer: the quotation names its own validity conditions, and we re-issue it.

The document flow these questions protect

The term is only useful if the paperwork matches it. Expect a commercial invoice carrying the same term and named place, a packing list whose carton count, weights and measurements match the physical pack, and the origin paperwork your broker uses. Alongside that set, the quality documents follow the grades actually ordered, with lot marks resolving to the incoming material batch, the adhesive lot, the slitting date and the inspection record. Check that the packing list and the carton labels agree, because incoming inspection depends on that link; the sets we issue are described on our quality page and indexed in the document library.

Send the ten questions with your destination port or address through our quote request, and the answers come back inside the quotation rather than in a follow-up thread.

Commercial and process terms on this page are the questions a converter has to answer, not a standing offer. Order quantities, lead times, tooling charges, sample terms, freight and payment structures are confirmed at quotation against your drawing, your material and your destination, and only figures already published elsewhere on this site are stated as commitments.