Guide

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

CostFOBCIF
Goods + export to Indian portSupplierSupplier
Sea freightBuyerSupplier
Marine insuranceBuyerSupplier
Import duty & local deliveryBuyerBuyer

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.

Chat on WhatsApp