FOB vs CIF vs CFR for Brazilian Imports: Which Incoterm Should You Choose?

Buyer guide · SAI Agro Brazil

Compare the complete buying basis

A freight-inclusive quotation and an origin-port quotation cannot be compared on unit price alone. Begin with the same product specification, quantity, packing and shipment period, then identify which transport and cost elements are included in each offer.

State the rule, named port and edition

Use an agreed trade rule with the named port and edition in the contract. The ICC is the official publisher of Incoterms rules. The rules address defined aspects of delivery, cost and risk; your contract must also establish product quality, payment conditions, documentation and remedies.

Separate transport cost from risk

Do not infer the point of risk transfer from who pays the ocean freight. Ask your logistics adviser to explain the chosen rule for the planned shipment. Review the responsibilities for origin handling, loading, transport documents, destination charges and clearance individually.

Review insurance deliberately

Determine who arranges cargo insurance and what coverage is required for the product and route. Check the scope, insured value, exclusions, claims process and documentation with the insurer. A quotation’s reference to insurance should be supported by clearly agreed conditions.

Choose around operational capability

The suitable term depends on the transport arrangement and the buyer’s and seller’s ability to manage their responsibilities. Obtain a landed-cost comparison, including the charges outside the quoted price, and resolve the responsibility matrix before accepting an offer.

Prepare your inquiry

Include your company details, product specification, quantity, packaging, destination country and port, preferred trade terms and shipment period. Requirements and supply conditions are confirmed for the individual offer. These guides support procurement preparation; current destination and contractual requirements should be checked with the relevant advisers and authorities.

Discuss your supply requirement with our export team.

Official reference: ICC Incoterms information.