FOB vs CIF vs EXW: what each includes and where buyers pay twice
FOB, CIF and EXW quotes can only be compared after you identify which transport, export, insurance, destination and handling costs are included and which party controls each step.
What to check before you decide
- Ask for the named place or port, not only the Incoterm abbreviation.
- Separate product value from origin charges, ocean or air freight, insurance and destination charges.
- Confirm with your freight provider which charges and risks move to the buyer at each handoff.
Keep the buying decision controlled
Start with one written brief: the product or service required, the buyer's target market, the commercial decision to make and the person who can approve the next step. Compare supplier answers against that same brief, keep versions of specifications and quotations together, and record each open point with an owner and date. This approach makes remote work, a China visit and a later inspection part of one evidence trail rather than separate conversations.
The mistake to avoid
The lowest headline price can create the highest landed cost when local charges or control points are omitted. Compare a full cost sheet, not only the unit price.
Need help turning a sourcing question into a practical China route, supplier brief or comparison process? Ask goChina Events for a focused planning conversation.