The Incoterm decides who prepares which document
A used diesel generator can leave a Chinese supplier’s yard under three common commercial terms: Ex Works (EXW), Free on Board (FOB), or Cost, Insurance and Freight (CIF). The machine may be identical, but the document set is not. The Incoterm rule named in the contract decides who books the vessel, who clears the goods for export, who insures the cargo, and which shipping documents each side must hand over before and after sailing.
Under Incoterms 2020 rules published by the ICC and summarized by the US International Trade Administration, there are eleven rules in total, and four of them — FAS, FOB, CFR and CIF — are reserved for sea and inland waterway transport, which is how most used generator sets leave China. The rule and its version should be written out on the contract and invoice, for example “CIF Incoterms 2020, Port Kelang”, not just “CIF”. A missing version or an unnamed port is where most document disputes start.
Documents that should exist under every Incoterm
Whichever rule the contract uses, a used generator shipment should produce this baseline set:
- A commercial invoice that matches the sales contract, including the buyer entity, the agreed Incoterm rule and version, and the named place or port.
- A packing list with crate or case numbers, dimensions and gross weights, so the receiving side can match pieces to the transport documents.
- Specification evidence for the exact unit sold: engine make and model, alternator, controller, standby and prime ratings, voltage and frequency, plus nameplate photos. This is what ties the paper to the machine.
- The condition file agreed at order stage — hour-meter reading, inspection notes and load-test results where applicable, recorded before crating.
If a supplier cannot produce these four items before asking for a deposit, the Incoterm discussion is secondary. Fix the evidence first.
EXW: the buyer carries the paperwork
Under Ex Works, the seller’s job ends at making the generator available for collection at a named place. The buyer arranges loading, inland transport to the port, export customs clearance, the bill of lading, sea freight and insurance. For used machinery this is the hardest term for an overseas buyer to execute alone, because export clearance in China normally requires a locally licensed declarant.
In practice, buyers who start from EXW either appoint a Chinese customs broker or ask the supplier to at least handle loading and export declaration as a service. If a used generator supplier refuses to support export declaration under any term, treat that as a selection signal and test another supplier before paying a deposit.
FOB: check what the seller clears and when risk passes
Under Free on Board, the seller loads the generator onto the vessel nominated by the buyer at the named port of loading. The seller’s document duties are export packing, the export declaration, and delivery on board evidenced by the bill of lading. The buyer books and pays the main sea freight, arranges cargo insurance, and handles destination charges and import clearance.
Before a deposit under FOB, confirm three things in writing: the exact named port of loading; who books the vessel and against what cut-off dates; and who reviews the bill of lading draft before it is issued. A used generator that misses a vessel because nobody owned the booking schedule will sit in the port yard accruing charges that the contract never assigned.
CIF: freight and insurance are the seller’s, risk is not
Under Cost, Insurance and Freight, the seller contracts and pays for carriage to the named destination port and provides the buyer with the bill of lading and an insurance certificate. The insurance the seller must buy under CIF is minimum cover, so buyers with higher-value shipments often add their own extended marine cover on top.
The detail that catches new importers is risk: under CIF, risk passes to the buyer when the goods are on board at the origin port, even though the seller pays the freight to destination. If a used generator is damaged on the sea leg, the buyer claims on the policy and the carrier, not on the seller. That is exactly why pre-loading evidence matters more under CIF than buyers expect: inspection before shipment and loading proof photos are what make an insurance or carrier claim provable. Our earlier CIF diesel generator quote checklist covers the quotation side of this.
Shipping documents specific to used generator sets
Beyond the standard trade documents, a used or refurbished generator shipment should include:
- Nameplate photos showing engine and alternator serial numbers, matched against the commercial invoice before payment.
- An hour-meter reading photographed and recorded before crating, with the meter visible in a dated photo.
- Loading photos that show the unit, the crating and the container or vessel space together, so the cargo identity is provable at destination.
- Fumigation or ISPM-15 marking documents for wooden crating, where the destination requires it.
Import-side rules also deserve a check before the Incoterm is fixed. Some destinations apply age, emissions or permit restrictions to imported used power equipment. Confirm import eligibility with a broker at the destination before signing, not after the generator is on the water.
How HXH Power prepares export files
HXH Power supplies used and refurbished diesel generator sets — including Cummins KTA and QSK series, Caterpillar 3512 units and MTU builds — quoted FOB or CIF from Chinese ports. For each export order the standard file set includes the commercial invoice, packing list, bill of lading, insurance certificate under CIF terms, and a nameplate and loading photo file for the exact unit shipped. Pre-shipment inspection can be arranged before crating, and a current stock list is available to dealers on request.
Buyer takeaway
Decide the Incoterm before comparing prices, name the rule and version in the contract and invoice, and require the document list that matches that rule — baseline trade documents plus unit-level proof for a used machine. Do this before the deposit, and the shipping file will hold together when the generator is halfway to the discharge port.
Sources: trade.gov, Know Your Incoterms; ICC, Incoterms 2020.