Understanding FOB, C&F, and CIF When Importing from Japan

Understanding FOB, C&F, and CIF When Importing from Japan

  • igetauto team
  • June 30, 2026
  • 3 minutes

When you buy a used car from Japan, the price will be quoted using one of three shipping terms: FOB, C&F, or CIF.

These terms determine what is included in the price and what you still need to pay for.

Car Cost Only

Before we talk about shipping terms, it is important to understand the base price.

The "car cost" is simply the purchase price of the vehicle itself.

It does not include auction fees, transportation to the port, pre-export inspection (JEVIC/QISJ/EEA), customs clearance, or any shipping costs.

This is the starting point before any shipping terms are applied.

FOB – Free On Board

FOB means the price includes the car cost and all local charges to get the vehicle loaded onto the ship in Japan.

This includes the auction fee, domestic transport to the port, and the JEVIC or QISJ pre-export inspection.

Once the car is on the ship, everything after that is your responsibility.

You pay for the ocean freight, marine insurance, and all costs from the port in your country onward.

FOB gives you full control over shipping and insurance, but you have to arrange everything yourself.

C&F – Cost and Freight

C&F stands for Cost and Freight. Sometimes it is written as CFR.

This term includes the car cost, all local charges in Japan, and the ocean freight to your destination port.

The seller arranges the shipping and pays the freight cost.

However, you are still responsible for marine insurance. The risk transfers to you once the car is loaded on the ship.

You also handle customs clearance, import duties, and local transport after the car arrives.

CIF – Cost, Insurance, and Freight

CIF includes everything in C&F, plus marine insurance.

The seller arranges both the shipping and the insurance.

The insurance covers the vehicle during the sea voyage.

You still need to handle customs clearance, taxes, and port charges when the car arrives.

However, having the seller arrange the insurance means your cargo is protected from the moment it leaves Japan.

Summary

Term Car Cost Local Charges Ocean Freight Insurance
FOB Yes Yes You pay You arrange
C&F (CFR) Yes Yes Included You arrange
CIF Yes Yes Included Included

Which One Should You Choose?

If you want full control and have experience with shipping, FOB is a good option.

If you prefer the seller to handle the shipping but want to arrange your own insurance, choose C&F.

If you want everything handled and your vehicle insured during transit, CIF is the easiest choice.

Most first-time importers prefer CIF because it gives them peace of mind with fewer things to arrange themselves.

A Final Note

In all three cases, the risk of loss or damage transfers to you once the car is loaded onto the ship in Japan.

This is a standard international trade rule.

Always check with your seller to confirm exactly what is included in the price.

And if you choose CIF, ask for a copy of the insurance certificate to understand what coverage you have.