Question 1

What is the difference between FOB and CIF when importing from India?

Accepted Answer

Under FOB (Free on Board), the Indian supplier delivers goods to the departure port in India, clears export customs, and loads them onto the vessel. From that point, you (the buyer) arrange and pay for ocean freight and insurance. Under CIF (Cost, Insurance, and Freight), the supplier handles freight and insurance all the way to your destination port. FOB gives you more control over shipping costs and carrier selection. CIF is simpler but the supplier typically marks up the freight and insurance, so the total landed cost can be higher.

Question 2

When should I use EXW instead of FOB or CIF?

Accepted Answer

EXW (Ex Works) means you take responsibility for everything from the factory door: local transport to the Indian port, export customs clearance, freight, and insurance. It gives you maximum control and visibility into every cost, but it also means you need a reliable freight forwarder in India and familiarity with Indian export procedures. EXW can work well for large, recurring orders where you already have logistics partners on the ground. For most first-time importers, FOB is a more practical starting point.

Question 3

Where does risk transfer under each Incoterm?

Accepted Answer

Under EXW, risk passes to the buyer the moment goods leave the factory premises. Under FOB, risk transfers once the goods are loaded on the vessel at the Indian port. Under CIF, risk also transfers at the port of loading (not the destination port, which surprises many buyers). This means that even with CIF, you bear the risk during the sea voyage, though the supplier has arranged insurance on your behalf. Always confirm the insurance coverage and terms when buying CIF.

Question 4

Is FOB or CIF cheaper for importing from India?

Accepted Answer

FOB is usually cheaper overall because you negotiate freight and insurance rates directly with your own forwarder, avoiding the supplier's markup. Indian suppliers quoting CIF often add 10 to 25 percent on top of actual freight costs as a buffer or margin. However, if you are placing a small first order and do not yet have a freight forwarder, CIF can save you time and complexity. As your volumes grow, switching to FOB typically reduces your landed cost.

Question 5

Is Sauda really free for buyers, and how does it make money?

Accepted Answer

Yes, Sauda is completely free for buyers. There are no fees, subscriptions, or commissions charged on the buyer side. Sauda earns from the supplier side. You simply send your sourcing requirement on WhatsApp (wa.me/9987549010), and Sauda finds factories, verifies them, calls them, and negotiates pricing, returning the cheapest verified live quotes within 24 hours.

Question 6

How does Sauda verify Indian suppliers before sending me quotes?

Accepted Answer

Sauda checks each supplier's GST filings and returns before presenting a quote. This confirms the factory is a real, tax-compliant business rather than a trading intermediary or inactive entity. The verification happens as part of the sourcing process, so by the time you receive quotes, every supplier behind them has already been checked. This saves you the manual work of cross-referencing GST portals or requesting documentation yourself.

FOB vs CIF When Importing from India: Which Incoterm Should You Choose?

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