EXW · FOB · CFR · CIF · DAP
Incoterms & Shipping Terms for Refractory Exports
firebrickssource.com quotes refractories in FOB Mundra by default, but CIF, CFR, EXW and DAP are all available on request. This page explains each Incoterm in plain language — what we, as the seller, cover; what you, as the buyer, cover; and when each term is the practical choice for a refractory shipment.
What Incoterms decide
Three things change with the Incoterm
Incoterms (International Commercial Terms) are a standardised vocabulary published by the International Chamber of Commerce. For a refractory shipment they decide three things: which party arranges and pays for each leg of the transport; at what physical point the risk of loss or damage passes from seller to buyer; and which party is responsible for export and import customs clearance. They do not decide payment terms (LC, TT, advance) or title transfer — those are separate clauses in the sales contract.
For refractory bricks shipped from Gujarat, India, the practical choice is almost always between FOB and CIF. FOB means we deliver the cargo loaded on the vessel at Mundra or Kandla and the buyer's forwarder takes it from there. CIF means we pay sea-freight and marine insurance to the destination port, and the buyer handles unloading, import duty and final delivery. The comparison table below lays out all five terms we quote.
Incoterm comparison
Seller covers / buyer covers — at a glance
| Incoterm | Seller covers | Buyer covers | When to choose |
|---|---|---|---|
| EXW (Ex-Works) | Production at our works, packaging ready for pickup | All transport, export documentation, freight, marine insurance, import duty, destination handling | Buyer's forwarder consolidates multiple Indian shipments and prefers full origin control |
| FOB Mundra / Kandla | Loading on vessel + export documentation + customs clearance ex-India | Sea freight, marine insurance, destination handling, import duty | Most common choice — buyer's freight forwarder handles the overseas leg |
| CFR (Cost & Freight) | FOB scope + sea freight to destination port | Marine insurance, destination handling, import duty | Buyer has a marine-insurance arrangement separately and only wants freight bundled |
| CIF (Cost, Insurance, Freight) | FOB scope + sea freight + marine insurance to destination port | Destination handling, import duty, inland delivery | First-time importer who wants full coverage to the discharge port |
| DAP (Delivered at Place) | All transport to buyer's named place, including destination handling | Import duty, local handling fees, unloading at named place | Domestic India deliveries; rarely quoted for international refractory shipments |
All terms align with Incoterms 2020 published by the International Chamber of Commerce.
Buyer questions
Frequently asked — Incoterms in practice
Do you quote DDP (Delivered Duty Paid)?
We do not normally quote DDP for international refractory shipments. DDP requires the seller to act as importer-of-record in the buyer's country and to pre-pay import duty, VAT/GST and local clearance — which we cannot do as a non-resident exporter. We will quote DAP up to a named place if you arrange import clearance.
What's covered under marine insurance on CIF?
Our default CIF marine insurance is Institute Cargo Clauses (A) — all-risks cover — for 110% of the invoice value, including transit from our works through the discharge port. War and strikes clauses can be added at small extra premium on request.
Which port should I prefer — Mundra or Kandla?
Mundra is preferred for most refractory destinations — it has more direct sailings to the Middle East, Europe and the Americas, and faster vessel turnaround. Kandla is used when a specific carrier prefers it or when the destination has better connectivity through Kandla. Both are roughly equidistant from our works.
Who is responsible if a container is delayed at the destination port?
Under FOB and CIF, container handling at the destination port is the buyer's responsibility. Demurrage and detention charges levied by the carrier or the port at the destination are for the buyer's account. We cover delay risk only up to the point of vessel loading at Mundra.
Can I split a shipment across two Incoterms?
Yes. Some buyers split — for example, FOB on standing-order bricks and CIF on a one-off specialty order — to consolidate insurance with their own broker for routine volumes. Each PO line is quoted separately under the requested Incoterm.
Does the Incoterm affect lead time?
Production lead time is identical across Incoterms. Total door-to-door time differs by Incoterm only by 0 – 3 days, because we book the vessel sailing at PI stage regardless of who pays for the freight. See MOQ & lead time for category-wise production windows.
Putting it together
Most buyers start on FOB Mundra
For a first refractory shipment from India, FOB Mundra is usually the safest starting point — your local forwarder already knows your destination port, customs broker and inland haulier, and is best placed to negotiate sea-freight on your routing. Once a baseline supply relationship is established, many buyers switch to CIF on smaller specialty orders for paperwork simplicity. For the full sourcing flow from spec to PO, see how to source refractories from India; to start a quote with your destination port, use the quote form.