FOB vs CIF: Which Documents You Need for Each
FOB and CIF change who books freight and insurance — and which documents the seller must produce. Here's the practical document map.
FOB and CIF are two of the most-used Incoterms in ocean trade — and they are often mixed up on invoices. The difference is not only about price: it changes who arranges main carriage and insurance, and which documents you must hand over.
For a broader Incoterms overview, see Incoterms 2020 for first-time exporters. This article focuses on the document set each term typically implies.
FOB (Free On Board) — Document Focus
Under FOB, the seller delivers when goods are loaded on board the vessel nominated by the buyer at the named port of shipment (ocean only in Incoterms 2020). The buyer typically arranges main carriage and insurance.
- Commercial invoice showing FOB and the named port of shipment
- Packing list aligned with the invoice
- Export clearance documents as required in the seller's country (for example a shipping bill in India)
- Evidence of delivery on board as agreed — often supporting the buyer's transport document
- Certificate of origin or inspection docs if the contract or LC requires them
The seller does not normally provide a CIF-style insurance certificate under FOB unless the contract separately asks for it.
CIF (Cost, Insurance and Freight) — Document Focus
Under CIF, the seller pays cost and freight to the named port of destination and must also obtain minimum insurance cover for the buyer's risk. Document presentation under an LC often scrutinises the insurance document as carefully as the B/L.
- Commercial invoice showing CIF and the named destination port
- Packing list
- On-board ocean bill of lading (or other transport document the contract/LC allows) to the destination port
- Insurance policy or certificate covering the required risks and amount
- Certificate of origin / inspection certificates when required
Side-by-Side Document Differences
| Document | FOB | CIF |
|---|---|---|
| Invoice Incoterm line | FOB + named load port | CIF + named destination port |
| Main carriage booking | Usually buyer | Seller arranges to destination port |
| Insurance document | Not seller's default duty | Seller must provide as required by Incoterms/contract |
| B/L destination logic | Per buyer's booking | Must fit CIF destination port story |
Where Exporters Get Burned
- Invoice says CIF while the LC and B/L tell an FOB story (or the reverse).
- CIF shipment presented without an insurance document the credit requires.
- Named place missing or inconsistent across invoice, booking, and transport document.
Practical Checklist Before You Ship
- Pick one Incoterm and named place; put the same wording on the proforma and commercial invoice.
- Map documents required by the buyer contract and LC.
- Confirm who books the vessel and who provides insurance.
- Run a consistency pass across invoice, packing list, and transport document.
Frequently Asked Questions
Does FOB require an insurance certificate from the seller?
Not under the Incoterm itself. The buyer usually insures from the point risk transfers. A contract or LC can still require a seller-provided document — read the credit.
Can I use FOB for air freight?
Incoterms 2020 reserves FOB for sea and inland waterway transport. For air, use a suitable term such as FCA and align documents accordingly.
Write the Incoterm once and reuse it everywhere. Bilexor keeps terms and goods on one shipment record so your commercial invoice and packing list stay consistent. Check your document set before presentation.
Informational only — not legal, banking, tax, or customs advice. Always verify document and LC requirements with your bank, CHA / customs broker, and buyer before presentation.