Import guide · Trade terms

EXW vs FOB vs CIF When Buying a Used Car from China

Updated 9 September 2026 · 6 min read EXW FOB CIF · DDP

Quick answer: EXW = you collect the car at our Beijing facility and handle everything yourself. FOB = we deliver it onto the vessel at Tianjin/Shanghai with export clearance done. CIF = FOB plus ocean freight and insurance to your destination port. First-time importers should choose CIF — one counterparty is responsible until the car reaches your port. EXW only makes sense if you run your own logistics network inside China.

Trade terms look like accounting jargon, but in used-car exports they decide something very concrete: who is on the hook when something goes wrong, and where. A loading delay, a missed sailing, a damaged vehicle in transit — the term you signed determines whose problem it is. Here is the plain-language version of the three terms you will actually be offered (plus DDP).

The three terms, side by side

EXW (Ex Works)FOB (Free On Board)CIF (Cost, Insurance & Freight)
Seller's job ends atOur yard in Beijing, keys handed overOn board the vessel, Tianjin / ShanghaiDestination port, discharged
Inland trucking to portBuyerSellerSeller
Chinese export clearanceBuyerSellerSeller
Ocean freightBuyerBuyerSeller
Marine insuranceBuyerBuyerSeller
Destination clearance & dutiesBuyerBuyerBuyer
Risk transfers whenAt pickupGoods on boardGoods on board (insurance covers voyage)
Typical userBuyer with own China logisticsExperienced importer with a freight forwarderFirst-time and small-batch importers

EXW — maximum control, maximum work

You (or your agent) pick up the vehicle in Beijing, arrange trucking to port, export clearance, freight and insurance. You control every vendor and margin — but from overseas, coordinating a customs broker and port operator in China is exactly where first shipments go wrong. Use it only if you already import from China regularly.

FOB — the professional default

We deliver the car on board at Tianjin or Shanghai: inland trucking, export licence, customs and loading are our job, with photos and seal documentation. From the moment the car is on board, cost and risk are yours. FOB suits buyers with a freight forwarder who gets better freight rates than we would pass on, or who consolidate cargo from several Chinese suppliers into one shipment.

CIF — the low-risk entry point

Everything up to your destination port is our responsibility, including marine insurance. One invoice, one counterparty, one point of accountability for the entire China-side and voyage. The freight line inside a CIF quote is transparent — we itemise it rather than hide a margin, and you can compare it against any forwarder's rate. If this is your first used-car import, or you buy 1–5 cars occasionally, this is the term to ask for.

Beyond CIF: DDP (delivered duty paid) extends the seller's responsibility through destination clearance and duties. It is route-dependent and quoted per case — ask us for a CIF vs DDP comparison on your route before deciding.

Which one should you pick?

  1. First import, 1–2 cars → CIF. One responsible party until your port.
  2. Regular importer with a forwarder → FOB. You likely buy freight cheaper yourself.
  3. You have staff or agents in China → EXW may save a few hundred dollars per car.
  4. You want zero destination-side work → ask for DDP availability on your route.

Frequently asked questions

Does CIF cost more than FOB in total?

Only by the freight and insurance you would have paid anyway. In a transparent CIF quote those lines are itemised, so you can verify the markup is reasonable. You are paying for coordination, not mystery.

Under CIF, who handles problems at my destination port?

Destination clearance and duties are always the buyer's job under CIF. The seller's responsibility is the voyage — if the car arrives damaged, the marine insurance claim is initiated from the shipping side with the documents we provided.

Can I mix terms in one order?

Yes. A common pattern: first shipment CIF to test the channel, later batches FOB once your own forwarder relationship is established.

Ask for a comparison

Get the same order quoted FOB and CIF

Send model, quantity and destination port — we quote both terms with every cost line visible.

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