· 6 min read
FOB vs CIF and Export Documents: A Guide for Importers Buying from India
Choosing the right Incoterm and knowing which documents to expect makes importing from India simpler and safer.
When you ask an Indian exporter for a price, one of the first questions will be: FOB or CIF? The answer changes who pays for freight and insurance, and who takes responsibility at each stage. Here is a plain-English guide.
FOB: Free on Board
Under FOB, the exporter delivers the goods on board the vessel at the named Indian port, for example FOB Mundra or FOB Nhava Sheva. The exporter handles export clearance. From that point, you, the buyer, pay the sea freight and insurance and take on the risk.
FOB suits buyers who have their own freight forwarder or get good freight rates.
CIF: Cost, Insurance and Freight
Under CIF, the exporter pays the freight and minimum insurance to your destination port, for example CIF Jebel Ali. Risk still passes to the buyer once goods are on board in India, but the exporter arranges and pays for the shipping.
CIF suits buyers who want one landed-at-port price and less logistics work.
Which should you choose?
| FOB | CIF | |
|---|---|---|
| Who books freight | Buyer | Exporter |
| Who pays insurance | Buyer | Exporter (minimum cover) |
| Best for | Buyers with a forwarder | Buyers wanting simplicity |
Export documents to expect
- Commercial invoice: the sales invoice for customs.
- Packing list: contents, weights and measurements of each package.
- Bill of lading (sea) or airway bill (air): proof of shipment.
- Certificate of origin: shows goods were made in India; can reduce duties under trade agreements.
- Phytosanitary certificate: required for most fresh produce and many spices.
- Fumigation certificate: for some agro products and wooden packing.
- Inspection or lab reports: when your market or contract requires them.
Payment terms
Common terms include advance payment, part advance with balance against documents, and Letters of Credit. Agree the terms in writing in the proforma invoice before production.
When you send an enquiry, choose FOB or CIF and add your destination port. We will quote accordingly.
