By:Global OEMs
In the context of increasingly fierce global trade competition, accurate and compliant quotation is a key link for foreign trade enterprises to impress overseas customers and secure orders. Many new foreign trade practitioners are often confused by trade terms such as FOB and CIF, leading to quotation errors or disputes. This article sorts out the core logic of foreign trade quotation, explains relevant terms, and recommends practical tools to help you quickly complete quotations for overseas customers.
I. Core Trade Terms: Key Differences Between FOB and CIF
FOB (Free On Board) and CIF (Cost, Insurance and Freight) are the most commonly used trade terms under the framework of INCOTERMS® 2020, with core differences in the division of costs, risks and responsibilities. For FOB, the seller is responsible for delivering the goods to the designated port of shipment and completing the loading on board, bearing the costs of domestic transportation and export customs clearance. The risk is transferred to the buyer when the goods pass the ship's rail, and the quotation only includes the product cost, domestic miscellaneous fees and export taxes. CIF, on the basis of FOB, additionally covers the freight and insurance fees from the port of shipment to the port of destination. The risk transfer point is the same as FOB, which is more suitable for overseas customers who are not familiar with international logistics.
II. 3 Key Points for Quoting to Overseas Customers
Accurate quotation needs to balance comprehensiveness and clarity. Firstly, fully calculate the costs, including not only the product cost itself but also hidden costs such as packaging fees, port miscellaneous fees and exchange rate fluctuation reserves. Secondly, clarify the trade terms and ports, such as "FOB Ningbo" and "CIF Los Angeles", to avoid ambiguous expressions. Finally, reasonably set the validity period of the quotation to cope with the risks of raw material price changes and exchange rate fluctuations.
III. Complete Compliant Quotation with One Click: Save Time with Tools
There is no need to memorize complex term rules by heart. The quotation calculator tool launched by Made-in-China.com can easily solve the problem. Simply enter key information such as product cost, freight and insurance fees, and the system will automatically match the trade term specifications to generate a standardized quotation including core elements such as payment terms, delivery time and quotation validity period. It not only ensures compliance but also greatly improves quotation efficiency, helping foreign trade practitioners quickly respond to customer needs.
