A quotation from a Thai exporter usually reads something like "USD X per carton, FOB Laem Chabang". To compare suppliers and calculate your real landed cost you need to know what that term includes — and what it does not. This primer covers the Incoterms you will see most and the payment terms that are common for B2B trade with Thailand.
The Incoterms you will actually meet
- EXW (Ex Works) — price at the factory door. You arrange and pay for everything: inland transport, export clearance, freight, insurance, import. Cheapest number, most work.
- FOB (Free On Board) Bangkok / Laem Chabang — the supplier delivers the goods, export-cleared, on board the vessel at the Thai port. You pay ocean freight, insurance and everything after. The most common term for Thai exports and the easiest for comparing suppliers.
- CFR / CIF (Cost and Freight / Cost, Insurance and Freight) your port — the supplier also pays freight (and insurance for CIF) to your destination port. Convenient for buyers without a freight forwarder, but freight is bundled and harder to benchmark.
- DAP / DDP — delivered to your door; DDP includes import duties and taxes. Rare for first orders; used mainly in established relationships or with trading companies.
Thailand's main container ports are Laem Chabang (deep-sea) and Bangkok Port (Klong Toey); air freight for samples and small urgent orders goes via Suvarnabhumi.
Comparing quotes fairly
Ask every supplier for the same Incoterm (FOB is ideal), the same packaging and the same quantity. Then add your own freight, insurance, import duty (check preferential rates under free-trade agreements with Thailand, using a certificate of origin), port charges and inland delivery to reach the landed cost per unit. A slightly higher FOB price with better packing density can win on landed cost.
Payment terms that are normal for a first order
For a new relationship, Thai suppliers commonly ask for a T/T deposit with the balance before shipment or against copy documents; letters of credit (L/C at sight) are standard for larger or commodity orders such as rice. Open-account terms come later, after a track record. Agree the terms in the proforma invoice and keep all payments traceable to the company's bank account — never to a personal account.
Protect yourself
- Verify the supplier (see how to verify a Thai supplier).
- Confirm specifications, packaging and labelling in writing and approve a pre-shipment sample.
- Consider a third-party pre-shipment inspection for first or large orders.
- Use the Incoterm and version (e.g. Incoterms 2020) explicitly in the contract.
Get comparable quotes quickly
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Disclaimer: THAIMOST is a platform that helps buyers and suppliers discover and contact each other. All prices, terms and transactions are agreed directly between buyer and supplier. This article is general information for educational purposes only — it is not legal, financial, tax or trade advice, and it is not a guarantee of any business outcome. Verify certifications, documents and regulatory requirements independently before you place an order.