Is a CIF contract a sale of documents?
A Cost, Insurance, and Freight (CIF) contract of sale is a sale of documents instead of sale of goods.
Who makes the contract of carriage on CIF contract?
The seller must contract on usual terms at his own expense for the carriage of the goods to the named port of destination by the usual route in a seagoing vessel or inland waterway vessel as the case may be, of the type normally used for the transport of goods of the contract description.
What is FOB and CIF?
The abbreviation CIF stands for “cost, insurance and freight,” and FOB means “free on board.” These are terms are used in international trade in relation to shipping, where goods have to be delivered from one destination to another through maritime shipping. The terms are also used for inland and air shipments.
What is CIF incoterm?
Under CIF (short for “Cost, Insurance and Freight”), the seller delivers the goods, cleared for export, onboard the vessel at the port of shipment, pays for the transport of the goods to the port of destination, and also obtains and pays for minimum insurance coverage on the goods through their journey to the named …
How is CIF calculated?
In order to find CIF value, the freight and insurance cost are to be added. 20% of FOB value is taken as freight. The total amount of CIF value works out to USD 1313.00. If any local agency commission involved, the same also is added on CIF value of goods – say 2% on FOB – USD 20.00.
Which is better CIP or CIF?
CIP vs CIF The two incoterms are very similar, except that CIP is used for all modes of transport, whereas CIF applies to sea freight only. This also means that for CIF, responsibility transfers at the origin seaport, whereas for CIP it transfers at any agreed-upon location in the origin country.
Who pays for unloading under CIF?
If CIF is the customs valuation basis, the costs of unloading the vessel, clearing customs, and delivery to the buyer’s premises in the country of destination—including inland insurance—must be deducted to arrive at the CIF value.
Does CIF price include duty?
CIF includes duty and charges, where the seller assumes responsibility for export customs proceeding and the buyer for import customs.
What is CIP value?
CIP (or Carriage and Insurance Paid To) is an Incoterm where the seller is responsible for the delivery of goods to an agreed destination in the buyers country, and must pay for the cost of this carriage. The sellers risk however, ends once they have placed the goods on the ship, at the origin destination.
What is VIP and CIP?
CIP stands for “Commerical Important Person” who is a general manager of a company or an important business man . VIP or CIP service is provided at the airports, hotels and seminar halls with a little difference which is the immunization of VIP service . CIP charges will be paid by the person himself .
What is CIP in export?
As per Inco terms, CIP means ‘Carriage and Insurance paid to (named place of destination). I will make you CIP term, easy to understand: ‘CIP terms of delivery in Exports and Imports’, explained easily. It is the duty of seller to pay freight or other carriage charges up to the destination contracted under CIP terms.
Can I use CIF for air freight?
But both of these expressions are false, because CIF incoterms rule is to be used only for sea or inland waterway transport. as a result you cannot use CIF trade term with air shipments, land shipments or rails shipments.
What does CIF price mean?
Cost, insurance, and freight
How do you quote CIF price?
x 500 boxes = 1,500 Cubic Ft = 42.47 Cubic Mts. In order to get to a CIF quote to the port of Yokohama, Japan you need first to calculate a Cost and Freight (CFR) and then add the insurance. To do this we have to consider several cost-factors and your freight forwarder should be able to assist.
What CIF means?
Cost, Insurance, and Freight
What is difference between CIF and CNF?
In CIF and CNF, the shipper is responsible until unloading with one difference between the two types. CIF means they will pay for the cost, the insurance and the freight, where CNF means the consignee is responsible for the insurance only.
What is included in CIF value?
So what does FOB and CIF means ? CIF – COST INSURANCE AND FREIGHT (named port of destination): Seller must pay the costs and freight includes insurance to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the ship.
What is CFR value?
Cost and freight (CFR) is a legal term used in foreign trade contracts. In a contract specifying that a sale is cost and freight, the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain them from the carrier.
What is EXW price?
Ex works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs.
What is better EXW or FOB?
Goods bought on EXW terms will often be slightly cheaper than products bought on FOB terms, as the supplier will include the costs of transport to the port, handling of the goods, and customs clearance to a FOB trade. Full control of the cargo and the transportation cost from start to finish.
What does EXW mean?
Ex Works means that the seller shall deliver the goods as soon as they are made available to the buyer at the seller’s premises or other designated premises (e.g. factory, plant, warehouse, etc.).
Who pays freight on ex works?
With Ex works, the seller makes the product available at a designated location, and the buyer incurs transport costs. With Free on Board, the seller is responsible for the goods until they are loaded on a shipping vessel; at which point, all liability transfers to the buyer.
What is the difference between CIF and ex works?
CIF or CRF import freight terms are more expensive than Ex Works or FOB. There will be a cost for arranging the shipping that the seller has to pass on. When you use Ex Works or FOB, all or most of the shipping costs is paid for by you, and avoids any costs from the seller being involved.
What does DAP mean?
Delivered-at-place
What is the difference between EXW and FCA?
In terms of delivery Ex-works, the seller delivers goods to the buyer at his (seller’s) premises. In an FCA terms of delivery, normally seller’s assistance is required by the buyer to deliver goods at contracted place at buyer’s costs and risks.
What is the best incoterm for seller?
Best Incoterms for sellers
- CFR-CIF: Cost and Freight – Cost, Insurance and Freight. The CFR Incoterm and the CIF Incoterm are generally good options for the seller as they’re competitive and do not involve too many risks.
- DDP-DAP: Delivered Duty Paid – Delivered at Place.
- FOB: Freight on Board.
Is FOB the same as ex works?
FOB and Ex Works terms can both be used to ensure you know all of your costs from the start of the shipping process all the way up to receiving your goods. Ex Works terms leave all responsibility and risk in the hands of the buyer, whereas FOB terms split the responsibility down the middle.
What does DAP incoterm mean?
Delivered At Place
Is DAP and CIF same?
Are the Incoterms® Cost, Insurance and Freight (CIF) and Delivered at Place (DAP) the same? No, they are not the same. CIF should only be used for conventional sea freight shipments, it is not appropriate for containerised freight or movements by any other modes of transport.