IBMH recommends hardly the FOB term to your imports from China.
As you may know, the Incoterms are international standards that we use to decide the conditions of delivery of the goods. What these standards exactly do is to determine who pays the transportation or port costs, and who must purchase the insurance of goods and under what conditions.
Within the 13 Incoterms or terms of delivery, there are 2 especially popular. They are the CIF and FOB. At IBMH we are committed to work always with FOB prices, with the aim that who is responsible for paying transport costs is always the buyer, because thus we have controlled and closed all the costs of import from China.
Why this recommendation?
In some occasions, international buyers have requested to the Chinese manufacturer of hardware for furniture at CIF prices, with the idea of that the final price of the product includes the cost of the transportation from China until the country destination. Up to here everything seems nice, but what is not known is that the Chinese manufacturer reaches an agreement with his freight forwarder or carrier not to assume the cost of transportation in origin, but to impact it directly on the invoice of the buyer to perform the customs clearance at destination and the delivery in the company of the buyer.
At IBMHCORP we have witnessed real abuses by transportation companies designated by Chinese manufacturers, which with the security that the buyer gives them; he will have to accept the cost that arises if he wants to be able to have the goods that has already paid in full to the Chinese manufacturer. The manufacturer has the opportunity to collect literally what he wants, without worrying that the conditions may be considered abusive and quite disproportionate. This is why at IBMHCORP we recommend to negotiate in FOB terms, because otherwise we can suffer unpleasant surprises about costs in destination charges.
You can never trust the final price that freight forwarders decide to put on the bill when your merchandise arrives when working on CIF conditions. Avoid bad surprises with IBMH!