MOQ, FOB and CIF in furniture export: what they mean

Export quotations turn on three abbreviations: MOQ, FOB and CIF. Without understanding all three you cannot compare two quotes, because the FOB and CIF price for the same product differ substantially.

MOQ — minimum order quantity

MOQ is the smallest order a manufacturer will accept. In furniture it is calculated by volume rather than unit count, because volume is what determines the shipping.

The unit is the container. A 20-foot container holds around 33 m³, a 40-foot around 67 m³, and a 40-foot high cube around 76 m³. A packed bedroom set averages 4–6 m³, which works out at roughly 6–8 sets in a 20-foot container.

For home furniture our MOQ is container-based. For retail and project furniture, MOQ is assessed project by project — the conversation is about store count and total volume rather than units.

FOB — Free On Board

Under FOB, the seller’s responsibility runs until the goods are loaded onto the vessel at the named port of departure. Transport from factory to port, export clearance and loading sit with the seller. Sea freight, insurance, import clearance and onward transport sit with the buyer.

That is why an FOB price looks lower. Buyers with their own freight arrangements prefer FOB, since they usually secure better rates.

Our port of departure is İstanbul, and FOB quotes are given on that basis.

CIF — Cost, Insurance and Freight

Under CIF the seller takes on sea freight and insurance on top of FOB. The goods travel to the port of arrival under the seller’s arrangements. Import clearance and inland transport still sit with the buyer.

A CIF price is higher than FOB because it includes freight and insurance. Buyers importing for the first time, or who would rather not deal with the logistics, ask for CIF.

When comparing two quotes, always check which delivery term they are quoted on; an FOB quote cannot be compared directly with a CIF one.

The sample process

An approval sample is produced before series production. It takes 2–3 weeks, and the sample cost is usually deducted from the order value. Once the sample is approved, series production follows it; changes after that point require a new sample.

Documentation

The documents prepared for shipment are the commercial invoice, the packing list, the bill of lading, the certificate of origin and any conformity documents the destination country requires. For shipments to European Union countries, an A.TR movement certificate is issued.

Where wooden packaging is used, an ISPM 15 heat treatment stamp is required. Without it, cargo on wooden pallets is held at customs in many countries.

Capacity and target markets

We have shipped to 26 countries to date, mainly in the Middle East, North Africa and Europe. We work at a capacity of 40 containers a month across our 14,000 m² facility. The export plan runs alongside that capacity; our primary focus is clients within Türkiye, and the export schedule is planned around that.