FOB vs CIF: Which Incoterm Should You Choose When Importing Dental Equipment?
A clear breakdown of what FOB, CIF, EXW, and DDP actually mean when you're importing a container of dental CBCT or chairs — and which one saves you money.
Incoterms — International Commercial Terms — define who pays for what, and when risk of loss transfers from seller to buyer. Confusing them is an expensive mistake. Here's what the four most common terms mean for a dental equipment shipment from China.
The 4 Incoterms you'll actually see
| Term | Seller pays | Buyer pays | Risk transfers at |
|---|---|---|---|
| EXW | Nothing | Everything from factory door | Factory loading dock |
| FOB Shanghai | Export packing + delivery to port + loading | Sea freight + destination port + inland | On board the ship |
| CIF | Everything FOB + sea freight + insurance | Destination port + customs + inland | On board the ship |
| DDP | Everything including destination duties | Nothing | At your door |
Why FOB wins for most buyers
For container-scale shipments, FOB is almost always the best choice. Three reasons:
- Freight transparency. Under CIF, the seller chooses the freight forwarder and pockets any margin between actual and quoted rates. Under FOB, you book directly with your own forwarder and see exactly what you pay.
- Insurance control. Under CIF, seller-arranged insurance is often minimum-coverage. For a USD 40,000 CBCT unit, you want real insurance — arrange it yourself.
- Freight forwarder relationships. If you import regularly, your freight forwarder knows your consignee, paperwork preferences, and destination port quirks. They get paid under FOB; under CIF a stranger handles it.
When CIF makes sense
CIF is worth considering if:
- • You're importing for the first time and don't have a trusted freight forwarder yet
- • Shipment is small (1 chair, 1 scanner) and the freight margin is small
- • You want a single invoice for simpler accounting
Avoid DDP for dental equipment
DDP (Delivered Duty Paid) sounds convenient — the seller handles everything including customs clearance and import duties. But for medical equipment like dental CBCT, destination-country customs rules often require an importer-of-record to be a locally licensed medical equipment distributor. An exporter in Shanghai can't legally act as your importer-of-record in the US, EU, UK, or most regulated markets. DDP usually breaks down at customs — which means your equipment sits at the port while you scramble.
Quick rule of thumb
Buying < $10k first time? Consider CIF. Buying > $10k or 2nd-plus time? FOB every time.
Have a specific unit in mind?
Tell us which model you want and your destination port — we'll quote FOB or CIF with a video demo of the actual unit in our warehouse.