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FN-003·TRADE·Q2 · 2026·6 min read

FOB,FOR,CIF:whatUKbuyersactuallyneed.

The shipping terms most often confused — and what they mean for your landed cost. A practical primer for first-time importers.

By the KHADANE desk · Bijolia

TRADE

First-time importers of Indian sandstone almost always confuse FOB, FOR, CIF, and EXW. These are Incoterms — the international rules governing where exporter responsibility ends and importer responsibility begins. They matter because they determine landed cost, insurance liability, and customs clearance responsibility.

EXW — Ex Works.

The exporter's job ends at the factory gate. The buyer arranges transport from the yard, customs clearance at origin, ocean freight, customs clearance at destination, and final delivery. Cheapest unit price. Highest buyer complexity. Rarely used for first-time importers.

FOR — Free On Rail or Free On Road.

A domestic Indian term. The exporter delivers the stone to a named rail station or trucking depot. Used almost exclusively in Indian domestic trade. Not relevant for UK importers receiving sea freight.

FOB — Free On Board.

The exporter's responsibility ends when the goods are loaded on the vessel at the agreed port of loading. The buyer arranges ocean freight, marine insurance, customs at destination, and delivery beyond destination port. This is the most common term for established importers. It separates costs cleanly.

CIF — Cost, Insurance, Freight.

The exporter's responsibility extends to the destination port. The exporter pays ocean freight and marine insurance. The buyer takes over at the destination port — customs clearance, port charges, inland transport. CIF is convenient for buyers who do not want to manage freight forwarding, but it bundles costs in a way that makes price comparison harder.

What we quote against.

We quote FOB, against the agreed Indian port of loading, as the default. For first-time buyers, we can quote CIF to a named UK port — typically Felixstowe, Southampton, or Tilbury — if the volume is sufficient. We do not quote DDP (delivered duty paid). UK VAT and import duty are the buyer's responsibility.

The right Incoterm is the one that makes the cost comparison honest.

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FOB, FOR, CIF: what UK buyers actually need. · FN-003