How to Interpret Chinese Manufacturers' Quotes: Incoterms

When conducting foreign trade with Chinese manufacturers (especially lotion pump factories and suppliers), a clear quote is the first step to cooperation. If you're seeking reliable partners, prioritize professional lotion pump manufacturers like Guangdong Hongyuan Dispensing Pump Co., Ltd.

However, for many overseas buyers, professional terms in quotes—such as Incoterms—often cause communication barriers. Failing to understand these key terms may lead to increased costs, delayed delivery, and even contract disputes.

Combining the lotion pump product scenario and cooperation experience with enterprises like Guangdong Hongyuan, we briefly analyze the key points to help you cooperate smoothly and avoid risks.

Incoterms: A Guide to Clarifying Rights and Responsibilities

Incoterms are the core rules in quotes, directly defining the division of responsibilities, cost bearing, and risk transfer points between buyers and sellers. Different terms correspond to completely different cooperation rights and obligations. The three common types in lotion pump foreign trade are FOB, CIF, and EXW:

✅ FOB (Free On Board): The most widely used term in lotion pump trade. Take FOB Nansha as an example—the manufacturer is responsible for transporting goods to Nansha Port, completing export customs clearance, and loading them onto the ship. After the goods cross the ship's rail, all subsequent risks (damage, loss) and costs (ocean freight, import customs clearance, insurance) are borne by the buyer.

✅ CIF (Cost, Insurance and Freight): More convenient for buyers. On the basis of fulfilling all FOB obligations, the manufacturer additionally covers ocean freight to the destination port and basic cargo insurance. Risks are still transferred to the buyer when the goods cross the ship's rail.

✅ EXW (Ex Works): The manufacturer bears the least responsibility. They only need to have the lotion pumps ready at the factory (with packaging and quality inspection completed). The buyer is fully responsible for picking up goods from the factory, inland transportation, import and export customs clearance, insurance, and all related costs.

Choose the right term based on your needs! Cooperate with professional lotion pump manufacturers like Guangdong Hongyuan Dispensing Pump Co., Ltd. to get clear term guidance and ensure smooth trade.