What's the difference between FOB and CIF for fabric imports from India?

Under FOB, the mill's responsibility ends once the fabric is loaded on the ship, and the buyer arranges freight and insurance. Under CIF, the mill also pays freight and insurance to the destination port. Neither covers import duty or inland transport at the destination.

Is a lower FOB quote cheaper than a CIF quote?

Not necessarily. FOB quotes exclude freight and insurance, which the buyer then arranges separately, so comparing quotes only works if you first confirm they're on the same incoterm or add the missing costs to the FOB price yourself.

Does any incoterm cover import duty or delivery to my warehouse?

No. FOB, CFR/CNF and CIF all end at the destination port. Import duty, customs clearance and inland transport are separate and are the buyer's responsibility unless a different arrangement is specifically agreed with the mill.

Does Benny Cotts have a fixed incoterm for export orders?

Not yet. Shipping arrangements are agreed per export enquiry based on your destination and order size. Share your destination port and we'll confirm what's possible in writing before production begins.

Incoterms Explained for Uniform Fabric Buyers Sourcing from India

Quick answer

Incoterms define who is responsible for shipping cost, insurance and risk at each stage of a fabric export from India. Under FOB (Free on Board), the mill's responsibility ends once the fabric is loaded onto the ship at the Indian port, and the buyer arranges and pays for freight and insurance from there. Under CFR/CNF (Cost and Freight), the mill also pays the sea freight to the destination port. Under CIF (Cost, Insurance and Freight), the mill pays freight and insurance to the destination port. These terms vary by mill and by order, so always confirm which incoterm applies, and what it covers, in writing before production begins.

Why the incoterm matters to your landed cost

The incoterm on a quote changes what's included in the price and what you still need to arrange or pay for separately. A lower quoted price under FOB terms isn't necessarily cheaper overall than a CIF quote once you add your own freight and insurance costs, so comparing quotes across mills only works if you first confirm they're quoted on the same incoterm.

FOB, CFR/CNF and CIF compared

Incoterm	Mill's responsibility ends at	Buyer arranges
FOB (Free on Board)	Loaded on the ship at the Indian port	Sea freight and insurance to destination
CFR/CNF (Cost and Freight)	Destination port (freight paid, not insured)	Insurance for the voyage
CIF (Cost, Insurance and Freight)	Destination port (freight and insurance paid)	Import clearance and inland transport

What none of these terms cover

FOB, CFR/CNF and CIF all end at the destination port, not at your warehouse door. Import duty, customs clearance, port handling charges and inland transport to your final destination are separate in each case and are the buyer's responsibility unless a different arrangement (such as DDP) has been specifically agreed with the mill.

What to confirm before production begins

Which incoterm applies to your specific order, in writing.
Exactly which costs are included under that incoterm and which are your responsibility.
Who arranges insurance if the incoterm doesn't include it.
What documentation (commercial invoice, packing list, certificate of origin) will accompany the shipment for your customs clearance.

Where Benny Cotts is on this today

We weave uniform fabric in-house at our unit in Village Atoon, Bhilwara, and are ISO 9001 certified. We don't yet have a fixed incoterm policy: shipping arrangements are agreed per export enquiry based on destination and order size. Tell us your destination port and we'll confirm what's possible and get the terms in writing before you commit.

FAQ

Frequently asked questions

What's the difference between FOB and CIF for fabric imports from India?: Under FOB, the mill's responsibility ends once the fabric is loaded on the ship, and the buyer arranges freight and insurance. Under CIF, the mill also pays freight and insurance to the destination port. Neither covers import duty or inland transport at the destination.
Is a lower FOB quote cheaper than a CIF quote?: Not necessarily. FOB quotes exclude freight and insurance, which the buyer then arranges separately, so comparing quotes only works if you first confirm they're on the same incoterm or add the missing costs to the FOB price yourself.
Does any incoterm cover import duty or delivery to my warehouse?: No. FOB, CFR/CNF and CIF all end at the destination port. Import duty, customs clearance and inland transport are separate and are the buyer's responsibility unless a different arrangement is specifically agreed with the mill.
Does Benny Cotts have a fixed incoterm for export orders?: Not yet. Shipping arrangements are agreed per export enquiry based on your destination and order size. Share your destination port and we'll confirm what's possible in writing before production begins.

Updated 19 July 2026 · Benny Cotts, Bhilwara

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