Two things make office furniture buyers hesitate before placing an order with a Chinese factory: shipping terms and payment terms. Together they decide the final cost more than the unit price printed on a quotation. A 40HQ container of staff desks and workstations can swing 15–30% in cost purely from the Incoterms and payment route you choose.
This guide explains EXW, FOB, CIF and DDP for office furniture imports, who carries which cost, the payment terms factories normally accept, and the documents to check before you transfer money. It draws on the export experience of BG Office Furniture, an office furniture manufacturer in Foshan supplying distributors and contractors across Indonesia, Southeast Asia, Central Asia, the Middle East, Africa and Latin America.
Why Incoterms Decide Your Final Cost
Incoterms (International Commercial Terms) define the delivery point: how far the seller is responsible and from when the buyer carries risk and cost. Two quotations with identical unit prices can therefore produce different landed costs depending on their Incoterm.
The most common mistake is comparing an EXW price from one supplier with a CIF price from another and concluding the first is cheaper. Price comparison is only meaningful when every supplier quotes on the same Incoterm.
EXW vs FOB vs CIF vs DDP
| Aspect | EXW | FOB | CIF | DDP |
| Factory responsibility | Goods ready at the factory | Goods loaded on board | Goods + ocean freight + insurance to destination port | Delivered to buyer's warehouse, duty paid |
| Buyer arranges | Export, trucking, origin customs, freight, import | Ocean freight, insurance, import | Duty, VAT, port handling, trucking | Nothing — all-in price |
| Best for | Experienced importers with their own forwarder | Buyers with an established freight agent | First-time importers wanting a fixed cost to port | Projects needing one total delivered price |
| Buyer control | Highest | High | Medium | Lowest |
When to choose EXW
EXW makes sense when you already have your own forwarder and customs broker in China and ship enough volume to command competitive freight rates. The logistics savings you negotiate yourself usually exceed the margin a factory adds.
When to choose FOB or CIF
For a first or second container, FOB and CIF save time: the factory handles export and loading while you keep control of insurance and import duty. CIF gives a predictable figure because freight and insurance are already inside the quotation, but check the insurance policy — cover should be at least 110% of invoice value.
When to choose DDP
DDP is often requested by projects that want one firm price at the site. However, DDP into many markets requires a compliant local import arrangement, so not every factory offers it. If a DDP quote comes in far below your own calculation, verify the duty and VAT assumptions — that is where the difference usually sits.
Payment Terms Factories Usually Accept
| Structure | Flow | Buyer risk | Note |
| T/T 30% deposit — 70% before loading | 30% on order, balance after inspection photos | Medium | Most common for container orders |
| T/T 50% — 50% | Larger deposit, balance after production | Medium | Used for small or custom orders |
| L/C at sight | Bank pays against compliant documents | Low (with strict documents) | Effective above USD 50,000 |
| Open account 30–60 days | Ship first, pay later | High for the factory, low for the buyer | Only for long-standing buyers |
Costly mistakes when choosing payment terms
- Paying in full without inspection. Always request production photos and video before the balance payment, including packaging and label shots. The full procedure is in our knock-down and import guide.
- Ignoring port charges and VAT. Duty can be 0% with Form E, but VAT still applies. See our ACFTA Form E guide.
- Not splitting cost per unit in mixed loads. The calculation for combined cargo is covered in our mixed container guide.
- Forgetting cost per cubic metre. The LCL versus FCL comparison for bulky furniture is in our LCL vs FCL article.
Documents to Check Before You Transfer
- Proforma invoice — model, colour, quantity, Incoterm and total value.
- Packing list — carton count, dimensions and weight per carton so you can verify cubic volume.
- Bill of lading — consignee and notify party must match your import records exactly.
- Certificate of origin / Form E — the basis for ACFTA 0% duty; it must be consistent with the invoice and B/L.
- Material certificates — formaldehyde emission report (E1/E0) and ISO 9001, frequently required in tenders. See our office furniture certification guide.
FAQ: Incoterms and Payment for Furniture Imports
Is FOB cheaper than CIF?
Neither is automatically cheaper — what differs is who controls the cost. FOB gives you freedom to choose the forwarder and insurer, so the total can be lower if you already hold negotiated rates. CIF is easier to compare between suppliers because the figure already covers everything to the destination port.
Is an L/C safe for a first order?
It is safe for both sides when documents are written strictly: the bank only pays against compliant documents, protecting the buyer, while the issuing bank guarantees payment, protecting the factory. For first orders below roughly USD 30,000, T/T 30/70 with inspection is usually more practical because L/C administration costs are proportionally high.
How long from deposit to delivery?
Typically 15–25 working days of production, plus about 7–10 days of ocean freight to Jakarta or Surabaya, plus 3–7 days of customs clearance and delivery to site. Total is around 4–6 weeks from deposit.
Takeaway
Compare quotations on one Incoterm, match payment terms to order value, and never settle the balance before receiving inspection photos and complete export documents. Those three habits usually save more than unit-price negotiation.
Ready to request a quote? BG Office Furniture manufactures meeting tables, staff desks, modular workstations and filing cabinets at direct factory pricing with MOQ from 5 pcs and OEM/ODM support. Request your EXW/FOB/CIF quotation on WhatsApp +86 189 2856 2556, browse the online catalogue, or reach us via the contact page — quotations within two working hours.