Case Explanation of CIF
Under CIF, the seller covers freight and insurance from the port of shipment to the port of destination, providing “symbolic delivery” (delivery via documents), but risks transfer to the buyer at the port of shipment. It suits scenarios where the seller is familiar with sea freight and the buyer seeks simplified transport arrangements.
Case Explanation of EXW
EXW is the trade term with the seller liability, focusing on “factory delivery, all subsequent responsibilities to the buyer.” It suits buyers with cross-border logistics capabilities, familiarity with import/export processes, or those wanting direct control over the supply chain (e.g., large importers, cross-border e-commerce self-pickup models).
Case Explanation of FOB
In an FOB transaction, the seller is mainly responsible for the goods until they pass the ship’s rail at the port of shipment, while the buyer takes on most of the responsibilities and risks related to transportation and import. This term is suitable when the buyer has better control over the transportation and insurance aspects and wants to handle these matters directly.