How to Compare Chinese Quotes: FOB, CIF and EXW
Why two quotes on the same Incoterm are comparable and two on different terms are not, and how to normalise them.
The most common purchasing mistake is comparing a FOB price against a CIF price and concluding one supplier is cheaper. They are not measuring the same thing.
What each term includes
- •EXW — goods made available at the supplier's premises. The buyer handles export clearance, all transport, insurance and import clearance.
- •FOB — the seller delivers the goods on board the vessel at the named port, having handled export clearance and inland transport. The buyer pays ocean freight, insurance and import costs.
- •CIF — the seller additionally pays ocean freight and insurance to the named destination port. Import clearance, duties and onward transport remain the buyer's.
How to normalise
To compare properly, convert every quote to the same basis. If you have a FOB and a CIF quote, add your own freight and insurance cost to the FOB price, or subtract the seller's stated freight and insurance from the CIF price — and note that their insurance cover may not match the level you would buy.
What else must be identical before comparing
- •Packing — 25 kg bags, 500 kg big bags, or jumbo bags change the unit price.
- •Port — FOB Qingdao and FOB Shanghai are different offers.
- •Payment terms — a deposit structure and an open-account price are not the same commercial offer.
- •Validity — for commodities with volatile feedstock, ask how long the price is held.
- •Specification — confirm both quotes are for the same grade and the same test method.
A practical habit
Request quotes on a single Incoterm and a single named port, with packing and payment terms stated. Comparison becomes arithmetic rather than judgement. ## Need the documents or today's price? Send us the grade, quantity and destination port — we return a quotation with COA and MSDS attached. Email manager@fipolymer.com or use the inquiry form on this site.