Here are some terms associated with manufacturing that you may come across that can be confusing if you do not understand what they mean. Sometimes these words can be included in the factories terms and conditions and it is very useful to understand what they mean.
When the price is ‘Ex Factory’, it only includes the cost of the goods. The ownership of the clothing products will be transfered to you once you have picked them up from the factory and you are responsible for shipping, insurance and any tax duties.
FOB is an acronym for Free On Board. It refers to when shipping your clothing from factories overseas. It will specify who will pay for which shipment and loading costs. It will also specify who is responsible for the goods being transfered to and from the ship.
CIF stands for Cost, Insurance and Freight. This means that the manufacturer's price includes the cost of goods, the insurance for the journey to the unloading point and the cost of transporting goods to you.
Cost and Freight, usually with the acronym CFR or C&F used when the manufacturer provides a price which includes the cost of your products and the shipping but not the insurance.
Landed Duty Paid is the price that includes goods, insurance, shipment, and the duties and quotas associated with importing products.
