Incoterms for Car Importers: FOB, CFR & CIF Explained
Every quote you get for a car from Japan uses one of three shipping terms. Knowing them tells you exactly what’s included — and what you still have to pay.
The three terms
| Term | Full name | What’s included |
|---|---|---|
| FOB | Free On Board | The car loaded onto the ship at the Japan port — vehicle + our commission + export costs. No sea freight or insurance. |
| CFR | Cost & Freight (C&F) | FOB plus ocean freight to your port. Insurance not included. |
| CIF | Cost, Insurance & Freight | CFR plus marine insurance — the full cost to your destination port. |
Where risk passes
Under all three, risk passes from seller to buyer once the car is on board in Japan. The difference is only who arranges and pays for the onward freight and insurance — with CIF, we do both, so you have the least to organize.
A worked example (JPY)
Say you win a car at ¥1,000,000:
- Hammer price: ¥1,000,000
- Commission (flat ¥35,000 up to ¥1,000,000): ¥35,000
- Export Package: ¥65,000
- = FOB ¥1,100,000
- Ocean freight to your port: + freight (varies by country & vehicle size)
- Marine insurance (~0.25% of FOB, minimum ¥3,000): + insurance
- = CIF (your cost to port)
Import duty and local taxes are charged by your country on top of CIF and are never part of our quote.
Use the landed-cost calculator for a live FOB and CIF figure for your country and vehicle size.
Which term should you ask for?
For most buyers, CIF is simplest — we handle freight and insurance, and you take over at your port. If you have your own freight forwarder, ask for FOB. See the full cost breakdown in total landed cost.