FOB vs CIF vs EXW: Which Incoterm Is Best for Your Apparel Order?
Understanding international shipping terms for garment sourcing. Compare costs, risks, and when to choose each option.
If you're sourcing apparel from overseas manufacturers, you'll encounter three common Incoterms: EXW, FOB, and CIF. Choosing the right one affects your total cost, risk, and control.
EXW (Ex Works)
You handle everything — pickup from the factory, export customs, ocean/air freight, import customs, and last-mile delivery.
- **Best for:** Experienced importers with their own freight forwarder
- **Cost control:** Maximum — you negotiate every leg
- **Risk:** You own the cargo from the factory door
- **Hidden costs:** Inland trucking from the factory to port
FOB (Free on Board)
**The factory handles** everything until the goods are on the ship at the port of departure. You handle ocean freight, insurance, and everything after.
- **Best for:** Most buyers — it is the industry standard
- **Cost control:** Good — you get factory pricing + shipping you control
- **Risk:** Factory bears risk until cargo passes the ship's rail
- **Why it's popular:** Clear division of responsibility, factory has incentive to deliver to port
CIF (Cost, Insurance & Freight)
**The factory handles** everything including ocean freight and insurance to the destination port. You handle import customs and inland delivery.
- **Best for:** New importers who want a simpler process
- **Cost control:** Less — the factory marks up shipping and insurance
- **Risk:** Factory bears risk until the destination port
- **Watch out:** Shipping costs are bundled into the product price — harder to compare quotes
Quick Comparison
| Factor | EXW | FOB | CIF |
|--------|-----|-----|-----|
| Your control | Maximum | High | Low |
| Complexity | High (you manage everything) | Medium | Low |
| Total cost | Potentially lowest | Competitive | Usually highest |
| Best for | Experienced importers | Most apparel buyers | New importers |
Our Recommendation
For most first-time and intermediate apparel buyers, **FOB** offers the best balance of cost, control, and simplicity. You get transparent factory pricing plus the freedom to choose your own freight forwarder.
All BOAZ quotes are provided FOB Tianjin port by default. We can arrange CIF or DDP upon request.
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