July 11, 2021 by Ebastores editorial team
Updated July 11, 2021
CIF International Trade Terms
Incoterms are one of the global sales terms, which are used around the world and are widely used, and are used for the purpose of allocating costs and responsibilities for commercial transactions between seller and buyer, which reflect modern practices in transportation, and these terms are closely related to the United Nations Charter on Contracts Global commodity sales, and in this article on our trading platform we will introduce you to CIF
International Trade Terms Classifications
Incoterms are divided into 3 classifications: EXW, FCA, FAS and FOB: With these terms the buyer pays the shipping costs, so it is ideal if you are the exporter. CFR, CIF, CPT, and CIP: These are the terms under which sellers pay the main shipping costs and include them in their price, note that while the seller pays the shipping costs, the goods go at the buyer's responsibility, so the buyer will want to investigate insurance. DAT, DAP and DDP: Under these terms the seller pays shipping costs and the seller bears all travel risks, in these cases the seller will want to consider insurance.
What is the Incoterms
Incoterms CIF is an acronym for Cost, Insurance, and Freight, which is the expense paid by the seller to cover costs, insurance and freight for the buyer's order while in transit, and until the goods are fully loaded onto the transport vessel, the seller bears the costs of any loss or product damage. Foreign trade laws and the most important international agreements on international trade Furthermore, if a product requires additional customs duties, export papers, inspections or re-routing, the seller must cover all these expenses, and once the freight is charged, the buyer becomes responsible for all other costs .
Cost, Insurance and Shipping Terms
The terms of the contract in CIF specify when the responsibility of the seller ends and the responsibility of the buyer begins. CIF is a traditional way of shipping goods to importers, and it is similar to free shipping on board with the primary difference being the party responsible for the expenses up to the point of loading the product onto the transport ship. Seller's Responsibilities under CIF Under the CIF Terms, Seller's responsibilities include:
·Purchase of product export licenses.
·Covering all costs and contracts of transporting or carrying goods.
·Giving insurance to protect the value of the order. Providing all processes for product inspection.
·Cover the cost of any damage to the goods.
·The seller must deliver the goods to the vessel within the agreed time frame. The seller must also give the buyer sufficient notice of delivery and provide proof of delivery and loading
International import and export terms
Ex-work import term
It is factory or warehouse delivery, which is the least obligation that the exporter can commit to the importer. If the price is $1,000, then this means factory delivery or delivered delivery, which is the price offer in your home. Import term Fob
Abbreviation for the phrase free on board delivery on the back of the ship. I, as an exporter, deliver the goods to the port and I clear and pay the bills and customs. This is the price of the fob, some people have errors that delivery by fob is for Sudan only and this is a wrong belief, but it means that you put the goods on the ship until he receives importer, but any out-of-ship delivery was not considered fob
Import Term Fca
This is an abbreviation for the word free carrier, which is the delivery of the carrier, if goods are requested from you through fca, that is, the delivery of the goods to a specific shipping company. The import term FAC, which is an abbreviation for the word free alongside ship, which means delivery next to the ship, and there is a difference between the term fac, fca and fob, as the fob pays customs and freight. Inside the port, the FCA delivers the goods and not pays customs. Inside the port, the FAC pays port duties, customs and local fees except for the arrival fees from the berth to the ship.
Cnf . Import Term
It is an abbreviation of the word coast and freight, which means costs and freight, and it is the same as the term cf, where the term CNF is similar to the term CFR in the same meanings and words. The obligations of the exporter in the term CNF to pay customs and pay freight until the goods are sent, the import term CIF, which is an abbreviation for the wholesale cost insurance freight, which is the costs Insurance and shipping. That is, the exporter pays all fees until the goods are shipped on the ship. He paid the freight in order to secure the goods, and delivered with the documents the insurance policy for the goods.
Cpt . import term
It is an abbreviation of carriage paid to. This means the price given to the importer. The thousand dollar price is called CNF, CFR or FOB CPT price. It means this price paid to a point used in land transportation as opposed to the previous other terms used in sea transportation