What do EXW, FCA, FOB, CIF and CIP mean, and what's included in the price?
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- Issue Time
- Aug 14,2026
These five are common Incoterms® 2020 (International Commercial Terms) rules. The key difference is the point at which risk transfers from seller to buyer, and who pays for transport, insurance, etc. Using the load/dispatch points we commonly use in practice:
• EXW Khorgos (Ex Works): We transport the vehicle to Khorgos. Your nominated freight forwarder picks it up at the exact Khorgos location we specify. We bear all costs and risks until the vehicle reaches Khorgos and provide the full set of export customs documents; from pickup onward, all subsequent costs, risks and import clearance are on you (the buyer).
• FCA Nansha (Free Carrier): We deliver the vehicle to the Nansha warehouse designated by your forwarder — delivery is complete once goods are handed over; we are not responsible for unloading or port local charges. We provide the full set of customs documents and bear the export declaration fee. Risk transfers to the buyer when the goods are handed to the carrier.
• FOB Nansha (Free On Board): We bear all costs and risks until the goods are loaded on board the vessel at the port of shipment (Nansha) — i.e. pass the ship's rail. After loading, risk and costs transfer to the buyer.
• CIF Nansha (Cost, Insurance and Freight): We bear the freight and insurance costs until the vehicle arrives at the destination port (risk transfers when the goods are loaded on board at the port of shipment, but freight and insurance are paid by us up to the destination port).
• CIP Khorgos (Carriage and Insurance Paid To): We bear all freight and insurance costs until the vehicle reaches the destination supervised warehouse.
In short: under EXW you bear the most (from our named point), while under CIP we bear the most (to your destination supervised warehouse). Which term to use depends on your preference, forwarder arrangements and cost control — we can advise. None of the Incoterms we use cover import clearance.