Short answer: ask for an FOB price as the base, and ask for freight to your port or your door as a separate line. FOB is the price that lets you compare one factory with another, because every factory's FOB stops at the same point. A factory can quote shipping once it has three things: your delivery address, the value of the goods, and the volume of the shipment.

What does each term include on a cabinet order?

The five terms differ in where the factory's price stops and your costs start.

Always name the place, such as FOB Nansha or CIF Melbourne. "FOB" on its own is not a full term.

Why is FOB the best price for comparing factories?

An EXW price leaves out trucking and export clearance, and those differ by factory location. A CIF or delivered price mixes the cabinets with freight, so a lower total can hide higher cabinet prices. With FOB, every factory's price stops at the same point: goods cleared for export and on the vessel. Compare the cabinets at FOB, then compare freight separately.

Our FOB port is Nansha. We export under our own company name, so trucking to the port and export clearance are inside our FOB price. For what else to line up between quotes, see how to compare quotes from different factories.

Can the factory include shipping to my port or door?

Yes. We quote EXW or FOB as the base and add sea freight to your port (CIF) as its own line. For New Zealand we quote DAP: transport to the door is ours, and import clearance, duty and GST are handled by the buyer.

A freight figure needs three inputs:

• The delivery address — port only, or the street address for door delivery.
• The value of the goods — for insurance and customs paperwork.
• The volume in cubic metres — this comes from the final drawings, so it is known once the design is signed off.

Before the drawings are final, use container rates for planning. Current 40 ft container rates run roughly USD 1,900–2,500 from China to Australia and USD 2,500–3,000 to New Zealand, and they move with the season. We suggest adding transit insurance.

How should freight appear on the invoice?

As three separate lines: goods value, international freight, and insurance. New Zealand Customs asks for these to be declared separately, and most customs brokers work faster from a split invoice than from one lump sum.

What should I check before accepting a DDP price?

DDP looks simplest because it is one price to your door. Check three points before you accept a DDP price:

• Who is named as the importer. Customs holds the importer responsible for the declaration, whoever paid the freight.
• How duty and tax are shown. They are set by your country's customs on the declared value. Ask for them as their own line.
• What value is declared. It should match the invoice you paid.

Your customs broker can confirm the duty and tax for your goods before you choose between CIF, DAP and DDP.

What else do buyers ask about trade terms?

Is CIF the same as delivered to my door?

No. CIF ends at your port. Port charges, import clearance and the truck to your site come after it.

Which term should a first-time importer ask for?

FOB for the cabinets, plus a separate freight line. You see the product price and the freight price side by side.

Does the term change the production time?

No. Production takes 35–45 days from the day the final drawings are approved, whichever term you choose. Shipping time is on top; see lead times from China.

For an FOB price with a separate freight line, send your drawings and delivery address through our contact page. For how the product price itself is built, see the cost breakdown and the published price ranges.