22/08/2026
Understanding Incoterms: FOB, CIF & EXW for Food Imports 🌍📦
When importing food products, understanding Incoterms can prevent unexpected costs, delays, and confusion over responsibilities.
Here are 3 commonly used terms:
🔹 EXW – Ex Works
The buyer takes responsibility from the supplier’s premises, including pickup, export procedures, freight, insurance, and import clearance.
👉 More control for the buyer, but also more responsibility.
🔹 FOB – Free on Board
The seller handles the goods and export formalities up to loading the goods on board the vessel. The buyer manages the main ocean freight, insurance, and import costs.
👉 Commonly preferred for international food shipments.
🔹 CIF – Cost, Insurance & Freight
The seller pays for the goods, export formalities, ocean freight, and minimum insurance up to the destination port. The buyer handles import clearance, duties, taxes, and onward delivery.
👉 Convenient for buyers, but always check what is included in the quotation.
💡 Buyer Tip:
Never compare supplier prices based only on the product cost. Always ask:
✅ Which Incoterm is being offered?
✅ Which port/place is named?
✅ What costs are included?
✅ Who handles customs clearance?
✅ Who bears the risk during transportation?
✅ What insurance coverage is provided?
The right Incoterm can make a significant difference to your landed cost.
Are you an importer? Which Incoterm do you usually prefer — EXW, FOB or CIF?