What is FOB and what does it mean when buying carpets from China?

FOB (Free on Board) means the seller delivers the carpet to the port of export (Tianjin) and clears export documentation. Once the carpet is on the ship, the buyer owns it and is responsible for: sea freight, insurance, customs clearance, and delivery to their warehouse.

What is CIF and how does it differ from FOB?

CIF (Cost, Insurance, Freight) means the seller covers the sea freight and insurance to bring the carpet to the destination port (e.g., Vancouver). The buyer still handles customs clearance and inland delivery, but the seller arranges and pays for the ocean voyage.

Which is better for Canadian buyers — FOB or CIF?

For most Canadian buyers, CIF is marginally better because: (1) the seller has more incentive to choose a reliable shipping line, (2) insurance is included by default, (3) you avoid negotiating sea freight separately. However, FOB gives you more control over shipping and lets you use your own freight forwarder, which experienced importers often prefer.

What hidden costs should I watch for with CIF quotes?

CIF quotes often exclude: port handling charges at destination (~$0.15-0.25/sqm), customs brokerage fees (flat $150-300), import duties and taxes (6.5-12% for carpets), and inland trucking to your warehouse. Always ask for a total landed cost estimate including all of these before comparing CIF quotes.

How do I calculate total landed cost with CIF?

Start with CIF price. Add: Canadian customs duty (6.5-12% depending on carpet type), GST/HST (5-13% provincial), port handling at destination (~$0.15/sqm), customs broker fee (~$150-300 flat), and trucking to your warehouse. For a $5/sqm CIF printed carpet, total landed cost in Vancouver is typically $6.50-7.50/sqm.

FOB vs CIF: Which Should You Use When Importing Carpets from China?

If you're importing carpets from China, you've seen both terms — FOB and CIF — on every factory quotation. Most buyers nod along but don't fully understand the difference. That confusion costs money.

Let me explain it clearly, with real numbers, so you know exactly which one to ask for.

📦 FOB — Free on Board

Factory delivers goods to Tianjin port. You pay freight and insurance from there.

✓ Product + delivery to port included
✓ You arrange sea freight
✓ You arrange insurance
✓ You handle customs clearance
✓ Lower quoted price — but more work for you

🚢 CIF — Cost, Insurance, Freight

Factory/agent arranges shipping to your destination port. Price includes everything.

✓ Product + freight to your port included
✓ Insurance included
✓ You handle customs clearance
✓ Higher quoted price — but simpler for you
✓ Total cost is transparent upfront

Real Example: Printed Carpets from Tianjin to Vancouver

Scenario: 500 sqm printed carpets, shipped to Vancouver

FOB Tianjin: $3.00/sqm × 500 = $1,500

What you still need to pay separately:

Sea freight Tianjin → Vancouver: ~$250-300
Marine insurance: ~$50-80
Port handling in Tianjin: ~$30-50
Port handling in Vancouver: ~$40-60
Customs clearance + duties: ~$200
Total additional costs: ~$570-690

CIF Vancouver: $3.60/sqm × 500 = $1,800

What you still need to pay:

Customs clearance + duties: ~$200
Total additional costs: ~$200

    Bottom line: CIF appears ~$0.60/sqm more expensive but saves you $370-490 in logistics hassle and gives you a guaranteed total cost upfront. For first-time importers, CIF is almost always the better choice.
  

When FOB Makes Sense

You have an in-house logistics team experienced with Chinese imports
You're shipping to a freight forwarder who handles everything from arrival at port
You're ordering very large volumes (20+ cubic meters) and can negotiate better freight rates than the factory
You have existing relationships with customs brokers

When CIF Makes Sense

You're new to importing from China
You don't have a freight forwarder or customs broker
You want one simple total cost to compare quotes
You want the factory export team to handle logistics coordination

How to Ask for CIF Quotes

When you request a quote, always ask for both FOB and CIF prices. A reputable supplier will give you both without hesitation.

For CIF to Canadian ports (Vancouver, Toronto, Montreal), the freight component is typically:

Vancouver: $0.40-0.60/sqm sea freight + $0.10-0.15/sqm insurance
Toronto/Montreal: add $0.10-0.20/sqm for inland routing

I always provide both FOB and CIF quotes so Canadian buyers can compare the true total landed cost. Request a free quote below.

Want FOB and CIF quotes for your carpet order? I'll get you both prices from verified Tianjin factories within 48 hours.

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