An FOB price covers the car until it is loaded onto the ship in Japan. A C&F price adds the ocean freight to your port, and a CIF price adds marine insurance on top of that. None of them includes your country’s duty and taxes, port and clearing charges, or the trip from the port to your home.
Key takeaways
- FOB = the car, delivered on board the ship in Japan.
- C&F (officially CFR) = FOB + ocean freight to your port. CIF = C&F + marine insurance.
- Under all three terms, the risk passes to you once the car is loaded onto the ship in Japan.
- Duty, taxes, port charges, clearing and inland transport are never included. You pay them in your country.
- Only compare quotes on the same basis and to the same port. Always ask which basis your invoice uses.
The three terms at a glance
FOB, CFR and CIF are Incoterms, a set of trade rules published by the International Chamber of Commerce (ICC). The current version is Incoterms 2020.
| Term | What the seller pays for | What you still pay for |
|---|---|---|
| FOB (Free On Board) | The car, export paperwork in Japan and loading onto the ship | Ocean freight, marine insurance and everything in your country |
| C&F / CFR (Cost and Freight) | Everything in FOB + ocean freight to your named port | Marine insurance (if you want it) and everything in your country |
| CIF (Cost, Insurance and Freight) | Everything in C&F + marine insurance to your named port | Everything in your country |
“Everything in your country” means import duty and taxes, port and terminal charges, the clearing agent, any local inspection or registration, and transport from the port to where you live.
FOB: Free On Board
FOB is the price of the car delivered onto the ship at the port in Japan. Freight and insurance are not included.
Under Incoterms 2020, the seller delivers when the car is on board the vessel at the named port of shipment. From that moment, the risk of loss or damage passes to the buyer.
On our website, Autocom Japan covers the costs of loading the car for shipment on an FOB sale. You then pay the freight and insurance separately, or arrange shipping yourself if your country allows FOB trading and you tell us in advance.
Cars in our current stock are listed with an FOB or C&F price. Choose your country at the top of the page to see the right price, or ask our office for a quote.
C&F (CFR): Cost and Freight
C&F is the price of the car plus ocean freight to the port in your country. You will also see it written as CFR (the official Incoterms name), CNF or C and F. They all mean the same thing.
The key point: the seller pays the freight, but the risk still passes to you when the car is loaded in Japan. If something happens at sea, it is your loss unless the car is insured.
A C&F price is always tied to a named port, such as “C&F Mombasa” or “C&F Kingston”. A C&F price to one port does not apply to another.
CIF: Cost, Insurance and Freight
CIF is the C&F price with marine insurance added for the sea journey.
Under Incoterms 2020, the default level of insurance in CIF is the Institute Cargo Clauses (C). That is a basic level of cover aimed at major events, such as fire, the ship sinking or a collision. It usually does not cover things like theft or small scratches. The buyer and seller can agree on higher cover.
As with C&F, the risk passes to you in Japan. The insurance is there so you can claim if the car is lost or damaged on the way.
What is never included
FOB, C&F and CIF all stop at your port. Costs in your country are always extra.
- Import duty and taxes. These are set by your government and usually depend on things like the car’s value, engine size and age. Check your revenue authority’s official calculator.
- Port and terminal charges at the arrival port.
- Clearing agent fees for preparing and lodging the customs entry.
- Local inspection and registration, where your country requires them.
- Inland transport from the port to your town.
If your country requires a pre-shipment inspection in Japan, check whether its cost is included in your quote or shown as a separate line.
Landed cost in three parts
The easiest way to plan is to split the total into three parts:
- The car in Japan: the FOB price.
- Getting it to your port: ocean freight and marine insurance. C&F or CIF already include these.
- Costs in your country: duty and taxes, port charges, clearing, inspection, registration and inland transport.
Our landed cost checklist lists each item and links to official calculators, so you can build your own estimate before you pay.
Why comparing quotes on different bases misleads
An FOB price will always look lower than a C&F price for the same car, because the freight is missing.
If one seller quotes FOB and another quotes C&F, you are not comparing the same thing. Before you compare:
- Put both quotes on the same basis (both C&F, for example).
- Make sure both are to the same port.
- Check the shipping method. Ro-Ro and container shipping are priced differently. See Ro-Ro vs container shipping.
- Check what extras are included, such as the pre-shipment inspection.
A note on insurance
With FOB or C&F, the car is your risk from the moment it is loaded, but it is not insured unless you or the seller arrange cover.
If you buy CIF, ask for the insurance certificate. Check who is insured, what is covered, and how to make a claim if the car arrives damaged. If you buy C&F, you can ask the seller about adding insurance or arrange it yourself.
Ask which basis your invoice uses
Before you pay, make sure the invoice clearly states the price basis and the port.
- Is this price FOB, C&F or CIF?
- Which port is it to?
- Is marine insurance included? What level of cover?
- Is the pre-shipment inspection (if needed for my country) included?
- What will I still pay when the car arrives?
Pay only by bank transfer to the company’s account in Japan, and check the beneficiary name on the invoice. See how to avoid scams when buying cars from Japan.
Frequently asked questions
Does the C&F price include clearing at the port?
No. C&F stops when the car arrives at your port. Port charges, clearing, duty and taxes are paid in your country.
Is CIF better than C&F?
CIF includes basic marine insurance, so the sea journey is covered for major events. With C&F, you carry that risk yourself unless you arrange insurance.
Can I buy FOB and arrange my own shipping?
Yes, if your country allows FOB trading. Contact us in advance so we can plan the loading with your shipping company.
Is C&F the same as CFR and CNF?
Yes. CFR is the official Incoterms name. C&F and CNF are common ways of writing the same term.
Is duty worked out on the FOB or the CIF value?
It depends on your country. Many customs authorities value the car including freight and insurance, so check with your revenue authority or clearing agent.
Sources
- International Chamber of Commerce: Incoterms® 2020 (checked 1 Oct 2026)
- Autocom Japan: price terms (FOB, C&F, CIF) (checked 1 Oct 2026)
- Autocom Japan: delivery help (arranging your own shipping under FOB) (checked 1 Oct 2026)
