FOB vs CIF: Which Shipping Term Should You Use When Importing Bearings to South America?
Importing bearings to Santos, Callao, or Buenaventura? Understanding FOB vs CIF — and how South America's free trade agreements affect your landed cost.
When you request a bearing quote from a Chinese supplier, they will ask: FOB or CIF? For South American importers, the answer depends on your country's trade agreements and port infrastructure.
FOB (Free On Board): Supplier delivers goods to the port in China. You pay freight and insurance from China to your port. You control the shipping company, the insurance, and the timeline.
CIF (Cost, Insurance, Freight): Supplier arranges shipping and insurance to your port. Convenient, but the supplier chooses the cheapest freight forwarder — you have no visibility until the container arrives.
Why FOB wins for South America:
1. Your own despachante (customs broker). Every experienced importer in Santos, Callao, or Buenaventura has their own customs broker who knows the local system. CIF shipments mean the supplier's forwarder handles clearance — often slowly and with extra fees.
2. Consolidate multiple suppliers. If you also import tires, chains, or other motorcycle parts from China, consolidate everything in one container. You can't do this with CIF.
3. Peru and Chile: Zero import duty under FTA. China-Peru and China-Chile Free Trade Agreements mean 0% duty on bearings. With FOB, you can optimize your freight and keep the landed cost at its absolute minimum.
4. Colombia: Just 5-10% duty. The China-Colombia FTA keeps bearing import costs low. Combined with FOB control over freight, landed costs in Bogotá or Medellín are very competitive.
Brazil exception: Brazil's import duty is 14-18% + ICMS state tax (7-12%). The higher tax burden means every dollar of freight optimization matters. Use a Santos-based freight forwarder who understands the ICMS credit system — you can recover some of the tax.
FULI's standard terms: We quote FOB Qingdao or FOB Tianjin. For trial orders under $3,000, DDP via DHL/FedEx door-to-door — no customs hassle. WhatsApp +86 152 6352 1305 for a quote within 24 hours.
This guide is prepared by Daniel Fu for the FULI Bearing export team using customer RFQs, inspection records, freight workflows, and repeat-order patterns from Latin American bearing buyers.
Related Guides for Importers
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Common Buyer Questions
What should I send before asking for a quote?
Send the bearing number, the application, the destination port, your preferred Incoterm, and whether you need neutral or branded packing.
How can I verify the batch before shipment?
Ask for the batch inspection report, material certificate, seal and clearance confirmation, and photos of carton labels before the balance payment is released.
Which routes should I read next after this guide?
Review the related guides above, then compare them with the relevant product category pages so your quote request includes the right models and specifications.
WhatsApp us your bearing list and destination port. We'll send an FOB price within 24 hours. Trial orders from 50 pcs per model.