The three Incoterms decide who pays and who carries the risk at each stage: EXW means you collect from the factory door and pay everything onward; FOB means the seller delivers the goods onto the ship and you pay freight, insurance and clearance from there; CIF means the seller pays freight and insurance to your destination port and you clear it. For most forklift buyers, FOB is the practical middle ground — you control the freight and insurance, often at a better rate than the factory can arrange, while the seller handles export at origin. EXW gives you the most control and the most work; CIF gives you the least of both. Note that import duty is charged on the customs value (usually CIF) regardless of the term. This guide compares the three, shows what each covers, and explains why HONGLI — building at its plant in Tai’an, Shandong, since 2012 — quotes FOB. Match the Incoterm to how much of the logistics you want to run yourself.
Who pays what (Incoterms table)
| Stage | EXW | FOB | CIF |
|---|---|---|---|
| Goods at factory | Buyer collects | Seller delivers to port | Seller delivers to port |
| Export clearance (origin) | Buyer | Seller | Seller |
| Loading on ship | Buyer | Seller | Seller |
| Sea freight | Buyer | Buyer | Seller |
| Marine insurance | Buyer | Buyer | Seller |
| Import clearance & duty | Buyer | Buyer | Buyer |
Why most forklift buyers choose FOB
FOB hands you the freight once the goods are on board, so you book the carrier, set the insurance, and often beat the price a factory would pass through. The seller still handles export at origin. It is the common default for machinery from China, and the basis HONGLI quotes on.
When EXW or CIF makes sense
EXW suits buyers with their own forwarder at origin who want full control from the factory door. CIF suits buyers who would rather the seller arrange freight and insurance to the destination port — simpler, but you lose rate control. Either way, import clearance and duty stay with you.
FAQ
What is the difference between FOB and CIF?
Under FOB you pay sea freight and insurance from the origin port; under CIF the seller pays them to your destination port. Both leave import clearance with you.
Which Incoterm is best for importing forklifts?
FOB for most buyers — you control freight and insurance at a better rate, while the seller handles export.
Who pays import duty?
The buyer, under all three terms. Duty is charged at your border, not at origin.
What does HONGLI quote on?
FOB. You add freight, insurance and duty to compare landed cost.
Related: /blog/forklift-prices-china-import-cost/ · /service-support/process/ · /resources/knowledge-base/forklift-import-duty-by-country/ · /get-a-quote/