The Biggest Difference Between FOB And CIF

< p > FOB commonly known as FOB, if the contract requires FOB price, then generally refers to from a href= "//www.sjfzxm.com/news/index_s.asp" > factory < /a >, the factory price plus shipping land to the port of shipment, that is, before leaving the port of shipment, and CIF quoted price, usually the FOB price plus shipping from the port of shipment to the destination port, so it is commonly known as CIF.

To say white, FOB is the seller to buy the buyer's place, and then carry it home, CIF is the buyer has been sending the seller's door! < /p >

< p > FREE ON BOARD (.Named port of shipment, abbreviation FOB) shipment on board is a traditional international trade term. When adopting this a href= "trade" > trade terms, the Seller shall deliver the goods to the buyer's designated ship at the port of loading stipulated in the contract and at the prescribed time, so as to fulfill the obligation of delivery.

The risks and expenses incurred by the seller and the buyer in relation to the costs and risks of the goods involved are on the side of the ship and the goods before the ship is loaded over the ship's side at the port of shipment.

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< p > on board terms of shipment, the seller is responsible for export clearance procedures, including application for export license, < a href= "//www.sjfzxm.com/news/index_q.asp" > declaration "/a" and payment of export duties.

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< p > cost plus freight (CFR), cost plus insurance and freight (CIF). The Seller shall be responsible for signing the contract of carriage of goods to the destination and paying the freight, but the risk of the goods is pferred to the buyer by the seller at the place of delivery of the exporting country, and the risk of the goods is borne by the buyer. Therefore, it is a contract of shipment (SHIPPMENT CONTRACT) and does not belong to the ARRIVAL contract (ARRIVAL CONTRACT).

The terms of group C and the terms of group F belong to the contract of shipment, COST AND FREIGHT Named port of destination, abbreviated CFR. The original abbreviation of cost and freight terms is "C&F". It is a traditional and commonly used international trade term. When adopting this trade term, the Seller shall be responsible for concluding a contract of carriage, loading the goods to the ship at the time of the sales contract and shipping the goods to the destination at the time of the sales contract, and paying the freight to the destination, but the risk of loss or damage caused by the risk of the goods passing over the port and the additional expenses incurred due to the accident shall be borne by the buyer.

This is different from the term FOB.

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< p > COST INSURANCE AND FREIGHT NAMED PORT OF DES TINATION, abbreviated CIF) "cost insurance and freight" is a traditional international trade term. In adopting this trade term, the Seller shall be responsible for the pportation of goods and insurance premiums in addition to the same obligations as "cost plus freight". The obligation of the seller is limited to the minimum insurance coverage, i.e. FPA, and the risk of goods is the same as that of "cost plus freight" and "on board" terms, which are pferred from the seller to the buyer when the ship is passing the ship's side.

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