A Turkish factory sends you three prices. One is EXW, one is FOB Istanbul, one is CIF Hamburg. They look like three prices for the same thing. They are not; they are three different allocations of risk, cost and control, and comparing them directly is how buyers lose money without ever seeing a line item.
What each term actually transfers
EXW (Ex Works) — the seller makes the goods available at the factory. Everything after that is yours: loading the truck, inland haulage to the port, Turkish export customs clearance, terminal handling, the vessel, the destination. In practice a foreign buyer cannot file a Turkish export declaration themselves, which means you will be appointing someone locally whether you planned to or not.
FOB (Free On Board) — the seller delivers the goods on board the vessel at the named Turkish port, cleared for export. You take over from there: sea freight, insurance, destination charges, import clearance.
CIF (Cost, Insurance and Freight) — the seller arranges and pays sea freight and minimum insurance to the named destination port. Risk still transfers at the origin port, which surprises many buyers: under CIF you carry the risk of loss at sea while the seller holds the contract with the carrier.
Why EXW looks cheap and usually is not
EXW is the term with the fewest costs inside it. That is the whole reason it looks attractive on a comparison sheet. What it hides:
- Inland haulage from the factory to the port, which the factory will “arrange” for you at a price you never see broken out
- Export customs clearance and documentation, which requires a Turkish party
- Terminal handling at origin
- The cost of your own time managing all of it in a second language and a different time zone
Buyers frequently accept EXW because the unit price was better, then pay a local agent an unquantified amount to make the problem go away. The correct move is to get that number quoted before you compare.
Why FOB is usually the right default
FOB puts the boundary at a clean, verifiable point: goods on board at a named port, cleared for export. The seller handles the part of the journey that requires being Turkish. You handle the part that requires being you.
It also keeps carrier selection with you, which matters more than it sounds. Under CIF the seller books the vessel, and the seller has no incentive to choose the fastest or most reliable service — only the cheapest, since they have already quoted you a fixed number.
Why CIF is comfortable and quietly expensive
CIF is popular with first-time importers because it produces one number and one counterparty. It also means:
- The freight margin sits inside the seller’s price, invisible to you
- You do not choose the carrier, the routing or the transit time
- The insurance is minimum cover under Institute Cargo Clauses (C), which is far narrower than most buyers assume
- You still carry the risk from the origin port onward, despite not controlling the carriage
If you use CIF, buy your own additional cargo insurance. The seller’s minimum cover will not make you whole.
How to compare quotes that use different terms
Convert everything to a single term before deciding — usually to your own door, or to FOB origin. Ask each supplier for the same product at the same term. If they resist, that itself is information.
A worked comparison for one 40’ container:
| Supplier A (EXW) | Supplier B (FOB) | Supplier C (CIF) | |
|---|---|---|---|
| Quoted price | 18,400 € | 19,600 € | 21,900 € |
| Inland haulage | + 620 € | included | included |
| Export clearance | + 180 € | included | included |
| Terminal handling origin | + 340 € | included | included |
| Sea freight | + 1,450 € | + 1,450 € | included |
| Comparable total (CIF-equivalent) | 20,990 € | 21,050 € | 21,900 € |
The supplier who looked 3,500 € cheaper is 60 € cheaper. The one who looked most expensive is 850 € more expensive, and controls your carrier.
The practical recommendation
If you are buying from Türkiye for the first time, quote FOB and control your own freight through a forwarder you appoint. If you have volume and a forwarder you trust, EXW plus your own inland arrangement can be a few per cent cheaper — but only once you have someone in Türkiye who can actually execute it.
And whichever term you choose, do not let the Incoterm change who inspects the goods. Inspection happens at the factory, before payment, regardless of where risk transfers.