Question 1

What is the difference between FOB and CIF?

Accepted Answer

Under FOB the seller's responsibility ends once the goods are on board; you arrange and pay for freight. Under CIF the seller arranges freight and insurance to the destination port — but risk still transfers at the origin port, which surprises most first-time importers.

Question 2

Which Incoterm is best when importing from China?

Accepted Answer

FOB is the common default because it gives you control of the freight and visibility of the real cost. DDP looks simpler but makes the seller the importer of record, which can conflict with conformity certification held in your name.

Question 3

Are Incoterms 2020 different from 2010?

Accepted Answer

Yes — DAT was replaced by DPU, insurance levels under CIP changed, and several obligations were clarified. Always state which edition your contract uses.

Incoterms 2020 Guide — FOB, CIF, DDP Explained