FOB, CIF, CFR, C&F

These terms relate to the delivery of the goods and they will affect the price of those goods.

FOB means Free On Board. This means that the goods will be deemed to be delivered to the Buyer at the point that the goods pass the ship's rail. Obviously, this will normally be as the goods are swung in their container onto the ship.

Free on board (FOB). This pricing term indicates that the cost of the goods, including all transportation and insurance costs from the manufacturer to the port of departure, as well as the costs of loading the vessel are readfiled in the quoted price. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.FOB Price does not include Shipping freight and Insurance charges"

CIF means Cost, Insurance, and Freight. This means that the Seller is providing a price which includes the cost of the goods, the insurance of the goods for their journey to their destination port/unloading point, and the cost of the ocean freight or whichever method of freight is being used to transport the goods to the Buyer. Therefore, delivery of the goods when quoted CIF will usually take place at the port of unloading.

Cost, insurance and freight" means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage."CIF Price Includes the Vehicle Price + Shipping freight + Insurance Cost"

CFR is also sometimes termed as C&F. This means cost and freight, and is where the Seller is providing a price which includes the cost of the goods and of the freight, but NOT insurance. Therefore it is similar to CIF but does not include insurance of the goods on their journey to the Buyer.

Free on board (FOB). This pricing term indicates that the cost of the goods, including all transportation and insurance costs from the manufacturer to the port of departure, as well as the costs of loading the vessel are readfiled in the quoted price.

"Cost and Freight" - commercial term meaning that the stated value of a shipment of goods includes all costs and freight involved in shipping the goods to their destination. C & F Price Includes the Vehicle Price + Shipping freight to the port of your country. What is Doctrine of Frustration?  Fair Competition Bill-Proponents and Opponents  FOB, CIF, CFR, C&F  Binding Tariff Information (BTI)  Cost of Running a Warehouse  Ex-warehouse meaning | EXW  What are Commentary and Digests?  What are the benefits of a Bonded Warehouse?  What is a Bonded Warehouse?  Significance of cyber laws | Importance of cyber laws Certificate of Origin ============================================================================== This site is mainly dedicated for Students of Law Schools, Law Universities, Students of Higher Education in Law, Admission in Law Schools, Scholars in Law, Students of Bar-at-Law, Law admission information, College of Law, Law Notes, Law Training, Law Tuition,  Law Study Guidelines, Business Law, Students of ACCA, CIMA, CFA,CA,ICWA,CPA, MBA,CMA