You've found the perfect marble, negotiated the price, and you're ready to sign the Proforma Invoice. Then the supplier asks: "Do you want FOB Xiamen, CIF Rotterdam, or DDP to your warehouse?"
If you're not sure what those terms mean — or which one actually saves you money — you're not alone. Choosing the wrong trade term can add thousands of dollars in unexpected costs, or worse, leave you liable for transit damage you thought was the supplier's responsibility.
This guide explains the four Incoterms most commonly used in the natural stone trade, shows real cost breakdowns, and recommends which term to use based on your experience level and order size.
What Are Incoterms?
Incoterms (International Commercial Terms) are standardized trade definitions published by the International Chamber of Commerce (ICC). They define exactly who pays for what and who bears the risk at each stage of international shipping.
The latest version is Incoterms® 2020, and there are 11 terms in total. In the stone import business, four are used in 95%+ of transactions:
The Four Key Terms for Stone Imports
At a Glance
| EXW | FOB | CIF | DDP | |
|---|---|---|---|---|
| Full Name | Ex-Works | Free on Board | Cost, Insurance & Freight | Delivered Duty Paid |
| Supplier's Responsibility Ends At | Factory gate | Ship's rail at Chinese port | Destination port | Your warehouse door |
| Buyer Arranges | Everything: trucking, export customs, freight, insurance, import customs | Ocean freight, insurance, import customs | Import customs, inland delivery | Nothing |
| Risk Transfers to Buyer At | Factory gate | Once loaded on vessel | Once loaded on vessel | At your door |
| Price Level | Lowest | Low-Medium | Medium-High | Highest |
| Buyer Control Over Logistics | Maximum | High | Medium | Minimum |
| Recommended For | Experienced importers with China logistics agents | Most stone imports (industry standard) | First-time importers | Buyers who want zero logistics hassle |
EXW (Ex-Works) — Maximum Control, Maximum Work
What it means: The supplier's only obligation is to make the goods available at their factory or warehouse. Everything else — inland transport to the port, export customs clearance, ocean freight, insurance, import customs — is the buyer's responsibility.
Real-world cost breakdown (20' container of marble slabs, Yunfu → Rotterdam):
| Cost Component | Who Pays (EXW) | Estimated Cost |
|---|---|---|
| Marble slabs (200 m²) | Buyer | $16,000 |
| Inland trucking (Yunfu → Shenzhen port) | Buyer | $400–600 |
| Export customs & documentation | Buyer | $200–400 |
| Container loading & port handling | Buyer | $300–500 |
| Ocean freight (Shenzhen → Rotterdam) | Buyer | $2,500–4,000 |
| Marine cargo insurance | Buyer | $50–100 |
| Import customs & duties (EU) | Buyer | $400–800 |
| Inland delivery (Rotterdam → warehouse) | Buyer | $300–600 |
| Total Landed Cost | $20,150–23,000 |
When to use EXW:
- ✅ You have a trusted freight forwarder in China
- ✅ You import regularly and want to consolidate shipments
- ✅ You need to combine stone from multiple suppliers into one container
- ❌ Not recommended for first-time buyers
FOB (Free on Board) — The Industry Standard
What it means: The supplier handles everything up to and including loading the goods onto the vessel at the named Chinese port. Once the goods cross the ship's rail, risk transfers to the buyer.
The same shipment under FOB Shenzhen:
| Cost Component | Who Pays (FOB) | Estimated Cost |
|---|---|---|
| Marble slabs + inland trucking + export customs + port loading | Supplier (all included in FOB price) | $17,200 |
| Ocean freight (Shenzhen → Rotterdam) | Buyer | $2,500–4,000 |
| Marine cargo insurance | Buyer | $50–100 |
| Import customs & duties (EU) | Buyer | $400–800 |
| Inland delivery (Rotterdam → warehouse) | Buyer | $300–600 |
| Total Landed Cost | $20,450–22,700 |
When to use FOB:
- ✅ Most stone imports — this is the global industry default
- ✅ You want the supplier to handle Chinese-side logistics (their strength)
- ✅ You want control over your own freight rates and shipping schedule
- ✅ Ideal for buyers who have a freight forwarder at the destination port
FutureStone Standard: Our default trade term is FOB Shenzhen or FOB Xiamen, depending on which port is closest to the destination. We handle all aspects of packing, inland transport, export customs clearance, and container loading. Request a FOB quotation →
CIF (Cost, Insurance & Freight) — Simplicity for New Importers
What it means: The supplier covers everything in FOB plus ocean freight and basic marine insurance. The buyer's responsibility begins when the goods arrive at the destination port.
The same shipment under CIF Rotterdam:
| Cost Component | Who Pays (CIF) | Estimated Cost |
|---|---|---|
| Marble slabs + inland trucking + export customs + loading + ocean freight + insurance | Supplier (all included in CIF price) | $20,000 |
| Import customs & duties (EU) | Buyer | $400–800 |
| Port handling & demurrage (if applicable) | Buyer | $200–500 |
| Inland delivery (Rotterdam → warehouse) | Buyer | $300–600 |
| Total Landed Cost | $20,900–21,900 |
When to use CIF:
- ✅ First-time importers who don't have freight forwarder relationships
- ✅ You want one clear price that covers most of the cost
- ✅ Small-to-medium orders where negotiating your own freight isn't worth the effort
- ⚠️ Note: The supplier chooses the shipping line, which may not always be the fastest
Important: CIF insurance is typically "minimum coverage" (Institute Cargo Clause C — covers total loss and general average only). For full protection against breakage, scratches, and partial damage, you should upgrade to Clause A (all-risks) insurance — either ask the supplier to arrange it (for an additional fee) or purchase your own policy.
DDP (Delivered Duty Paid) — Zero Hassle, Maximum Cost
What it means: The supplier handles absolutely everything — transport, freight, insurance, import customs clearance, duty payment, and delivery to your door. The buyer does nothing except receive the goods.
The same shipment under DDP (delivered to warehouse in Amsterdam):
| Cost Component | Who Pays (DDP) | Estimated Cost |
|---|---|---|
| Everything: marble + all logistics + all customs + delivery | Supplier | $22,500 |
| Total Landed Cost | $22,500 |
When to use DDP:
- ✅ You've never imported and want zero logistics complexity
- ✅ Small orders (single slab or sample shipment)
- ✅ The supplier has established import channels in your country
- ❌ Less transparent — hard to verify if customs/freight markups are reasonable
- ❌ Most expensive option per m²
Side-by-Side Cost Comparison
| Cost Element | EXW | FOB | CIF | DDP |
|---|---|---|---|---|
| Material cost | $16,000 | $17,200 | $20,000 | $22,500 |
| Buyer-arranged costs | $4,150–7,000 | $3,250–5,500 | $900–1,900 | $0 |
| Total landed range | $20,150–23,000 | $20,450–22,700 | $20,900–21,900 | $22,500 |
| Buyer logistics effort | ⬛⬛⬛⬛⬛ Very High | ⬛⬛⬛ Medium | ⬛⬛ Low | ⬛ None |
| Cost transparency | ⬛⬛⬛⬛⬛ Full | ⬛⬛⬛⬛ High | ⬛⬛⬛ Medium | ⬛⬛ Low |
| Risk on buyer | Very High | Medium | Medium-Low | None |
Decision Framework
| Your Situation | Recommended Term | Why |
|---|---|---|
| First import ever, order < $15K | CIF or DDP | Minimize risk and complexity while you learn |
| First import, order $15K–50K | CIF | Good balance of cost control and simplicity |
| Regular importer, established freight forwarder | FOB | Best value — you control freight costs |
| Large volumes, China logistics agent | EXW | Maximum cost optimization and consolidation |
| Sample or single-slab order | DDP | Not worth arranging freight for small shipments |
| Multi-supplier consolidation | EXW | Combine loads from different marble, granite, and furniture suppliers |
Common Pitfalls to Avoid
| Pitfall | Description | Prevention |
|---|---|---|
| Comparing prices across different terms | A supplier quoting $75/m² FOB is NOT cheaper than one quoting $90/m² CIF — you haven't added freight yet | Always calculate total landed cost before comparing |
| Forgetting destination charges under CIF | CIF price ends at the port — you still need to pay port handling, customs, and inland delivery | Budget an additional 5–10% of CIF value for destination costs |
| Assuming CIF insurance covers breakage | Standard CIF insurance (Clause C) covers only total loss | Upgrade to Clause A or buy your own all-risks policy |
| Not confirming the named port | "FOB China" is too vague — freight costs differ between Shenzhen, Xiamen, Shanghai, and Tianjin | Always agree on a specific port: "FOB Shenzhen" |
| Ignoring demurrage risk | If you don't clear customs fast enough, daily container rental charges ($50–150/day) accumulate | Have your customs broker ready BEFORE the container arrives |
How FutureStone Handles Each Term
| Term | FutureStone Service |
|---|---|
| FOB (default) | Full service: professional wooden crate packing, inland trucking, export customs, container loading at Shenzhen/Xiamen port |
| CIF | FOB + we arrange competitive ocean freight via our long-term shipping line partnerships + marine insurance |
| DDP | Full door-to-door service available for select markets (USA, EU, UAE, Australia) via our logistics partners |
| EXW | Available — you or your agent pick up from our Yunfu factory |
→ Request a quote with your preferred Incoterm →
FAQs
Which Incoterm is cheapest for marble imports?
EXW offers the lowest material price, but your total cost depends on how efficiently you manage logistics. For most buyers, FOB provides the best balance of price and convenience.
Can I switch Incoterms with the same supplier?
Yes. Many importers start with CIF for their first order, then switch to FOB once they've established their own freight channels. FutureStone supports all four major Incoterms.
Does the Incoterm affect product quality?
No. The marble quality, grading, and specifications are independent of the trade term. Incoterms only affect logistics, cost allocation, and risk transfer.
What about the other 7 Incoterms (FCA, CPT, CIP, DAP, DPU, FAS, CFR)?
They exist but are rarely used in the stone trade. FCA and DAP occasionally appear for inland deliveries. For ocean-shipped stone, FOB and CIF cover 90%+ of transactions.
Part of the Marble Import Guide series. Published by FutureStone Group — direct marble manufacturer and exporter since 2008. Browse our marble catalog →
