IMPORTER GUIDES · TRADE TIPS · MAY 2026
MOQ, FOB, EXW, CIF, Lead Time and T/T Payment Terms — Explained in Plain Language
By Xchange4Me Team · May 2026 · 7 min read
You message a supplier on Alibaba or 1688. They send back a quote. It looks something like this: MOQ 200 pcs, $4.50/pc FOB Guangzhou, T/T 30%, lead time 20–25 days.
You nod along and confirm the order. Three weeks later, your goods are sitting at the factory gate and going nowhere. Turns out FOB means you were supposed to arrange a freight forwarder to collect from the Chinese port — and nobody told you that.
This happens to importers across Africa every single week. Not because they are not smart — but because nobody ever explained these terms in plain language.
This guide covers every trade term your Chinese supplier will ever use — what it means, who is responsible, and what you need to do before you send any payment.
MOQ is the smallest number of units a supplier is willing to sell in a single order. If a listing says MOQ 100 pcs, you cannot order 50 — the supplier will not produce fewer than that quantity because it is not economically viable for their factory to do so.
Raw material procurement, machine setup, and labour costs all happen before the first unit is made. Spreading those fixed costs across a minimum number of units is what makes each unit profitable for the factory. Below that number, they lose money.
MOQ is almost always negotiable — especially for a first order. The approach that works:
Offer a higher unit price in exchange for a lower quantity
Ask to order existing stock rather than custom production
Commit to a larger follow-up order if the sample batch is satisfactory
Try this: "Your MOQ is 500 — I would like to start with 200 at a slightly higher unit price to test market demand. If results are good, my next order will be 1,000." Most suppliers respond positively.
EXW is the trade term that puts the most responsibility on you as the buyer. When a supplier quotes EXW, their job ends the moment they pack the goods at their factory. They make the goods available at their premises — and everything else is yours to handle.
Under EXW, you are responsible for:
Arranging a truck to collect from the factory
Export customs clearance in China
Loading onto the ship at the port
Ocean freight and insurance
Import customs and last-mile delivery in your country
EXW prices look attractive but are deceptive. By the time you add factory pickup, China domestic trucking, export documentation, port fees, and ocean freight — the real landed cost is often higher than a FOB or CIF quote. Not recommended for first-time importers.
FOB is the most commonly used trade term between African importers and Chinese suppliers. Under FOB, the supplier takes responsibility for getting your goods from the factory all the way to the ship at the named Chinese port. The moment your goods are loaded onto the vessel, the responsibility — and the risk — transfers to you.
FOB Guangzhou, FOB Shenzhen, FOB Shanghai — the named city is the port of departure. The supplier handles inland transport to that port and export clearance. You handle everything from the ship onwards.
SUPPLIER PAYS (up to ship) | YOU PAY (from ship onwards) |
Factory to Chinese port | Ocean freight |
Export customs clearance | Marine insurance |
Loading goods onto ship | Import customs in your country |
Last-mile delivery to your warehouse |
Practical tip: Before confirming a FOB order, already have a freight forwarder in China (or a freight agent in your country who works with China) lined up and ready to receive the goods at the named port.
CIF is the most buyer-friendly term for new importers. The supplier covers the cost of the goods, international shipping, and basic marine insurance all the way to your destination port. You only take over once the goods arrive and need to clear customs locally.
CIF quotes appear more expensive than FOB at first glance — but that is because more is included. Always compare on a total landed cost basis, not just the supplier's headline price.
Best for: importers who are still building freight forwarder relationships, or those shipping to a country with a straightforward customs process. CIF lets you focus on what you know while the supplier handles the complex international leg.
Lead time is the number of days the supplier needs to produce and pack your order — measured from when they receive your deposit, not from when you place the enquiry.
Critical: Lead time does not include shipping. A supplier quoting 20-day lead time means your goods will be ready at their factory in 20 days — the ship hasn't even left China yet.
Real timeline for sea freight from China to West Africa:
Stage | Time | Who arranges |
Deposit paid → Production complete | 20–35 days | Supplier |
Factory → Chinese port | 3–5 days | Freight forwarder |
Ocean freight to your port | 25–35 days | You / FOB |
Customs clearance + delivery | 5–14 days | Your customs agent |
TOTAL REALISTIC TIMELINE | 53–89 days |
The rule: If you need goods by a specific date, count backwards from that date and allow at least 75 days as a conservative estimate. Always add a buffer for Chinese public holidays, port congestion, and customs delays.
T/T stands for Telegraphic Transfer — it simply means a bank wire transfer or an Alipay payment. When a supplier says T/T 30/70, they mean:
Term | What it means | When to pay |
30% | Deposit — secures your order slot and covers raw materials procurement | Before production starts |
70% | Balance — paid once goods are produced and confirmed ready to ship | After production, before shipment |
Other common split variations:
T/T 50/50 — 50% upfront, 50% before shipment. Common for smaller orders.
T/T 100% — full payment upfront. Never agree to this with a new supplier.
T/T 30/70 against BL — 70% paid against the Bill of Lading (shipping document), not just production completion. Safer for the buyer.
Golden rule: Your 70% balance payment is your most powerful negotiating tool. Pay it only after you have confirmed — ideally through a pre-shipment inspection — that the goods are correct, complete, and ready to ship. Once that money leaves your account, your leverage is gone.
Term | What it means | Who pays/does what |
MOQ | Minimum order quantity | You must meet this — or negotiate up the unit price |
EXW | Supplier packs at factory door only | You handle everything from factory to delivery |
FOB | Supplier loads onto ship at named port | You pay ocean freight, insurance, import customs |
CIF | Supplier covers freight + insurance to your port | You handle local customs and delivery only |
Lead Time | Days to produce goods — not including shipping | Add 30–50 days sea freight + customs after this |
T/T 30/70 | 30% deposit now, 70% balance before shipment | Never pay 100% upfront to a new or unverified supplier |
Once you have confirmed the order terms — your MOQ, the trade term, the lead time, and the T/T split — the next step is sending your deposit. For most African importers paying Chinese suppliers, that means converting your local currency to Chinese Yuan (CNY) and funding your supplier's Alipay wallet.
That is exactly what Xchange4Me by Stardywave was built for. Fast, reliable currency exchange from NGN, GHS, XOF, and other African currencies to CNY — with direct Alipay wallet funding and real-time WhatsApp notifications on every transaction. Save your supplier as a beneficiary and your next payment takes seconds.
TAGS:
Trade Terms · MOQ · FOB · EXW · CIF · Lead Time · T/T · Alibaba · 1688 · Importing from China · Xchange4Me
About Xchange4Me: Xchange4Me by Stardywave is a cross-border currency exchange platform helping African importers, freelancers, and travelers swap local currencies to CNY for Alipay wallet funding and direct supplier payments. Visit xchange4me.org to get started.
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