Why a cheap CIF quote can cost more at the UK port

Who pays what under CIF

CIF, cost, insurance and freight, means the supplier arranges and pays sea freight and insurance to the named UK port. Everything after the goods arrive is for the buyer: the charges at the terminal, the customs entry, duty and import VAT, and haulage to your address. See Incoterms explained.

The catch is control. The supplier's forwarder in China books the freight and nominates its own partner in the UK. You did not choose that partner and have no agreed price with it, but it holds the documents you need to release the goods.

“A price that looks too low usually is. Going straight to a factory is cheapest on paper, but you pay for it in communication, time zones and trial and error. What you pay a good intermediary for is the service.” — Bono Xu, Cambridge China Bridge

Why a low freight line is a warning

Forwarders are paid across the whole shipment, not only on the ocean leg. If the freight line on a proforma looks low for the volume and weight, the margin may be collected at the UK end instead, through terminal handling, delivery order and documentation fees, or unpacking charges for a shared container. That is not always the case, but it is the reason to ask.

Ask the supplier for the UK agent's name and contact, and ask the agent for its charges for your shipment in writing before you pay the balance. If you prefer, get your own forwarder's quote on FOB terms and compare the two on the same basis; our guide to landed cost shows how.

Shared container or a full 20ft

A shipment of a few cubic metres usually travels as LCL, sharing a container. LCL is charged on volume or weight and has its own unpacking charges at the UK depot. As the volume grows, a full 20ft container (FCL) can become competitive, and it avoids unpacking at a shared depot. For a shipment in between, ask for both prices; see sea vs air freight and shipping from China to the UK.

Customs value and VAT under CIF

A CIF price already includes the freight and insurance to the UK, so it is close to the customs value that duty is charged on; see customs value. Import VAT is charged on the customs value plus duty plus incidental costs to the first UK destination, so some of the UK-side charges also carry VAT. Our hidden costs guide lists the rest.

Checking a quote before you pay

If you have a CIF quote from a Chinese supplier, we can check it before you pay, with a free preliminary review, including whether the freight line and UK-side charges look complete. Cambridge China Bridge can also quote one UK landed price covering freight, duty and clearance.

A DDP quote hides a different risk: the customs entry may not be in your name, so you may get no import VAT evidence; see whether you can reclaim VAT on DDP shipments.