FOB vs CIF: A Simple Guide for Paper Bag Importers
FOB and CIF are the two most common shipping terms (Incoterms) in export. Understanding them helps you compare quotes fairly and control your landed cost.
What FOB means
FOB (Free On Board) means the supplier delivers the goods onto the ship at the export port (in India). From that point, you — the buyer — pay for sea freight, insurance and everything at the destination. FOB prices look lower because they stop at the Indian port.
What CIF means
CIF (Cost, Insurance & Freight) means the supplier pays the sea freight and marine insurance all the way to your destination port. The price is higher, but more of the journey is handled for you.
Quick comparison
| Cost | FOB | CIF |
|---|---|---|
| Goods + export to Indian port | Supplier | Supplier |
| Sea freight | Buyer | Supplier |
| Marine insurance | Buyer | Supplier |
| Import duty & local delivery | Buyer | Buyer |
Which should you choose?
Experienced importers with their own freight forwarder often prefer FOB for control and lower cost. Newer buyers who want a simpler, door-to-port price often prefer CIF. Signature Kraft quotes on both terms — just tell us your destination port.
Request an export quote and we'll price your order on FOB or CIF.
Get an export quote today
Tell us your bag style, size and quantity — we'll send pricing and samples, and ship export-ready from India.
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