Every export quotation carries a three-letter term such as EXW, FOB, CIF, or DDP. These are Incoterms, the trade rules published by the International Chamber of Commerce. They decide who pays for transport, who arranges it, and the exact point at which risk passes from seller to buyer. Two quotations for the same towel can differ widely in price simply because they are on different terms.

What an Incoterm settles

• Which costs the seller pays and which the buyer pays.
• Who arranges transport and insurance.
• Who handles export and import clearance.
• Where the risk of loss or damage transfers.

An Incoterm does not set the price, the payment terms, or when ownership passes. Those belong in the sales contract.

The four terms towel buyers meet most

EXW: Ex Works

The seller makes the goods available at its own premises. The buyer arranges and pays for everything from that point: collection, export clearance, freight, insurance, import clearance, and delivery. EXW gives the lowest quoted price and the most work for the buyer. It suits buyers who already have a forwarder operating in the seller's country.

FOB: Free On Board

The seller delivers the goods on board the vessel at the named port of shipment and clears them for export. Risk passes to the buyer once the goods are on board. The buyer arranges and pays the ocean freight, insurance, and everything at destination. FOB is widely used for sea freight because it lets the buyer control freight cost while the seller handles the local side.

CIF: Cost, Insurance and Freight

The seller pays for freight and insurance to the named destination port. Risk still passes to the buyer when the goods are loaded on board at origin, even though the seller has paid for the voyage. The buyer handles import clearance, duties, and onward delivery. CIF suits buyers who want one price to their port without arranging freight themselves.

DDP: Delivered Duty Paid

The seller delivers the goods to the named place in the buyer's country, cleared for import, with duties paid. The seller carries the cost and risk the whole way. DDP is the simplest for the buyer and the most demanding for the seller, and it is not always practical, because the seller must be able to clear goods in the buyer's country.

A note on sea and other transport

FOB and CIF are designed for sea and inland waterway transport. For air freight or mixed transport, the equivalent terms are FCA (Free Carrier) and CIP (Carriage and Insurance Paid To). If your towels are travelling by air, ask for the quotation on one of those.

Comparing quotations fairly

To compare an FOB price with a CIF price, add your own freight and insurance cost to the FOB figure. To compare with EXW, add inland transport to the port and export clearance as well. Only then are you comparing like with like.

Which should you choose?

• You have a freight forwarder and ship regularly: FOB usually gives you the best control of cost.
• You are placing a first order and want simplicity: CIF gives a single price to your port.
• You want goods delivered to your door with nothing to arrange: ask whether DDP is available for your country.
• You consolidate goods from several suppliers in India: EXW or FCA may suit your forwarder.

Write it precisely

An Incoterm needs a named place and the edition of the rules, for example "FOB Nhava Sheva, Incoterms 2020" or "CIF Jebel Ali, Incoterms 2020". Put it in the quotation, the proforma invoice, and the purchase order, so there is no doubt later.

Mansa Exim International quotes on the term you prefer. Our Request a Quote form lets you choose EXW, FOB, CIF, or DDP, or you can contact us with your destination and we will advise.

A vague enquiry gets a vague price. When a buyer writes "please quote for bath towels", a supplier has to guess the weight, size, quality, and branding, and the quotation that comes back cannot be compared with any other. A clear specification sheet fixes that. It takes a few minutes to write and it saves weeks of back and forth.

What a towel specification should cover

1. Towel type and use

State the product (bath, hand, face, gym, kitchen, or pool towel) and where it will be used: hotel rooms, spa treatments, retail shelves, a gym chain. The end use tells the supplier what matters most, whether softness, durability, or fast drying.

2. Size

Give the finished dimensions in centimetres or inches, for example 70 × 140 cm. Say whether the size is measured before or after washing, since cotton towels shrink a little in early washes.

3. Weight

State the GSM (grams per square metre), or the weight per piece in grams. Either works, as long as the size is fixed. If you are not sure, describe the feel you want and ask the supplier to propose a weight.

4. Composition

Specify 100% cotton or a polyester and cotton blend, and the blend ratio if you have one in mind. If yarn quality matters to you, say so: for example combed cotton, or ring-spun yarn.

5. Colour

White, or a dyed colour. For colours, give a reference such as a Pantone code or send a physical swatch. Describe any stripes or contrast borders.

6. Border and construction

Mention the border style you want (plain, dobby, or a jacquard design) and the hem finish. If you have an existing towel you like, send it or a clear photograph.

7. Branding

If the towels will carry your logo or name, say how: embroidery, or woven into the towel by jacquard. Share the artwork, its size, its position on the towel, and the thread or yarn colours.

8. Labels and packing

List what each towel should carry: a woven label, a care label, a hangtag, a band. State how the towels should be packed, for example individually bagged, or bundled in sets, and how many pieces per carton.

9. Quantity

Give the quantity per size and colour, and say whether this is a one-time order or a repeating programme. Volume affects price, so an honest estimate produces a more useful quotation.

10. Delivery terms and destination

Name the destination port or city and the Incoterm you prefer, such as FOB or CIF. State the date you need the goods.

11. Compliance and testing

If your market or your customer requires a particular certificate, test report, or labelling rule, list it at the start. It is far easier to plan for at quotation stage than after production.

A short example

Bath towel for hotel guest rooms. 70 × 140 cm finished size. 550 GSM. 100% cotton, white. Dobby border. Hotel name embroidered in one colour, 8 cm wide, centred above the border. Care label sewn in. Packed in polybags of five, export cartons. 3,000 pieces. CIF Jebel Ali. Required at destination by a stated date.

A few lines, and a supplier can price it accurately and make a matching sample.

What happens next

A good supplier will confirm the specification, point out anything that is unclear, and produce a sample for approval before bulk production begins. Approve the sample in writing, and keep it. It is the reference for the whole order.

Ready to send a specification? Use our Request a Quote form, which follows the same structure, or contact Mansa Exim International directly.