EXW vs FOB vs CIF: A Buyer's Guide to Trade Terms

EXW (Ex Works): the seller's obligation ends when the car is handed over at their premises. Inland transport, customs declaration and ocean freight are all on the buyer. For sourcing from China, EXW offers maximum price transparency and suits professional importers with their own forwarders.

FOB (Free On Board): the seller delivers the vehicles onto the vessel at the port of shipment; freight and insurance after that belong to the buyer. For bulk vehicle exports, RoRo FOB is the mainstream choice, with costs between EXW and CIF.

CIF (Cost, Insurance & Freight): the seller pays freight and marine insurance and bears risk until the port of destination — ideal for first-time buyers without customs experience, though the total price runs 8%–15% higher than FOB.

Practical tips: whatever the term, specify port of shipment, sailing schedule, insurance coverage and claim deadlines in the contract; double-check VINs and vehicle condition against the B/L; for large orders, request a pre-shipment inspection (PSI).