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The difference between FOB, CIF, CFR's

  • Author:naky
  • Source:www.diecastingpartsupplier.com
  • Release on:2015-10-16
FOB (FREE ON BOARD .... Named port of shipment, acronym FOB) FOB is a traditional term commonly used in international trade, in the use of the trade terms, stipulated in the contract required the seller the loading port and at a specified time, to deliver the goods on board named by the buyer, in order to fulfill their delivery obligations. Costs and risks borne by the buyer and seller are related cargo ship for the sector, and goods across the ship's rail at the port of shipment before the risks and costs borne by the seller, later transferred to the buyer over the side of the ship, shall be borne by the buyer.
FOB conditions, require the seller is responsible for export clearance procedures, including the export license, the declaration and payment of export tariffs.

Cost and Freight (CFR), Cost, Insurance and Freight (CIF) The seller will be responsible for the signing of the contract of carriage will transport the goods to the destination and pay the freight, but the goods in the exporting country risks are transferred from the seller to the place of delivery the buyer, the risk of goods in transit by the buyer, therefore, belong shipment contracts (SHIPPMENT CONTRACT) without arrival contracts (ARRIVAL CONTRACT). C-terms and F-terms belong shipment contracts,

Cost and Freight (COST AND FREIGHT ... Named port of destination, the abbreviation CFR), cost and freight term original abbreviated as C & F, it is a traditional, commonly used international trade terms, when the use of the trade terms, the seller will be responsible for entering into a contract of carriage, according to the sale of time, according to the contract of sale specified time in the shipping of goods to the port of shipment and payment will ship goods to the named destination, but the risk of the occurrence of goods in Hong Kong after the transfer of goods across the ship's rail the risk of loss or damage and all additional costs due to the occurrence of accidents caused by the buyer. This is the FOB (FOB) terms are different.
Cost Insurance and Freight (COST INSURANCE AND FREIGHT NAMED PORT OF DESTINATION, acronym CIF) "Cost Insurance and Freight" is a traditional term commonly used in international trade, in the use of the trade terms, the seller in addition to undertaking the "cost Freight "(CFR) the same obligations, should be responsible for lost cargo insurance and pay the premiums, but the seller's obligation is limited to the minimum insurance coverage to insure that the FPA, as the risk of the goods with the" cost plus shipping "(CFR) and FOB (FOB) condition is the same, all in the boat crossed the ship's rail at the port of shipment transferred to the buyer by the seller.