When you request a quotation for a Japanese used car, you will see one of three price terms: FOB, CNF or CIF. They look similar but the differences affect your total cost, your insurance cover and your responsibilities. Here is a simple guide from the team at Shams International Trading Co. JP.
What does FOB mean?
FOB (Free on Board) includes the cost of the vehicle and delivery to any port within Japan. It does not include international shipping or insurance. Choose FOB if you already have your own freight forwarder or want to arrange shipping separately.
What does CNF mean?
CNF (Cost and Freight) includes the cost of the vehicle and shipping to your destination port, but excludes insurance. It is a good middle option when you want a single all-in price to the port and will insure the vehicle yourself.
What does CIF mean?
CIF (Cost, Insurance and Freight) includes the vehicle, marine insurance and shipping to your destination port. It offers added protection during transit and is the term we quote by default in our export process.
Quick comparison
| Term | Vehicle | Japan port delivery | Sea freight | Marine insurance |
|---|---|---|---|---|
| FOB | ✔ | ✔ | ✘ | ✘ |
| CNF | ✔ | ✔ | ✔ | ✘ |
| CIF | ✔ | ✔ | ✔ | ✔ |
Which should you choose?
- First-time importer: CIF — the simplest, with insurance included.
- Dealer with a freight contract: FOB — you control shipping costs.
- Experienced buyer with local insurance: CNF.
What is not included?
None of these terms include import duty, taxes, port charges, clearing agent fees or local registration in your country. Check your own country’s rules before you buy, and ask us if you are unsure. The International Chamber of Commerce publishes the official Incoterms rules that define trade terms like these.
Get a transparent quotation
FOB vs CIF vs CNF in one sentence
In the debate of FOB vs CIF vs CNF, the only real difference is how much of the journey is included in the price: FOB stops at the Japanese port, CNF adds sea freight, and CIF adds insurance as well.
Example: how the same car is quoted three ways
Imagine a vehicle that costs a certain amount in Japan. Your FOB price covers the car and delivery to the Japanese port. Add sea freight and you have the CNF price. Add marine insurance and you have the CIF price. The more services the term includes, the higher the quotation — but also the fewer separate arrangements you need to make.
Costs paid in your own country
After arrival you should budget for import duty and taxes, port and handling charges, clearing agent fees, inspection or compliance tests, and registration. These costs vary by country and are not included in the price terms above.
Frequently asked questions
Which term do most customers choose?
Most first-time buyers choose CIF because insurance is included and the price to their port is clear.
Can I change the term after I receive a quotation?
Yes. Tell us which term you prefer and we will send a revised quotation.
Tell us your destination port and preferred term and we will send a clear, itemised price. Not sure whether to ship by RoRo or container? We will advise. Request your quotation today.
