Does CIF benefit me or the importer?
Post 1 of 74
Untill now I havenot experienced CIF.
I have paid for the freigh but I made them CFR not CIF but my new customer wants CIF for the Romania. He says godds might be stollen in Romania so I hae to do it. Does C?f benefit me or him?
Who must pay for the Insurance?
Thanks in advance for the answers.
Smfakse
I have paid for the freigh but I made them CFR not CIF but my new customer wants CIF for the Romania. He says godds might be stollen in Romania so I hae to do it. Does C?f benefit me or him?
Who must pay for the Insurance?
Thanks in advance for the answers.
Smfakse
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08 Sep 2006 01:26
Post 2 of 74
Replying to [smfakse]:
CIF is just another term of commerce. It doesn't benefit you or affect you. Actually, if your customer wants it like that, it can benefit you in terms of service quality and would mean a longer business relationship.
CIF means Cost, INSURANCE and Freight, thus, you have to pay the insurance but, at the end, your customer will have to pay a higher price than FOB, because he has to cover all your costs.
I hope this answer helps you.
Regards!
CIF is just another term of commerce. It doesn't benefit you or affect you. Actually, if your customer wants it like that, it can benefit you in terms of service quality and would mean a longer business relationship.
CIF means Cost, INSURANCE and Freight, thus, you have to pay the insurance but, at the end, your customer will have to pay a higher price than FOB, because he has to cover all your costs.
I hope this answer helps you.
Regards!
17 Sep 2006 20:04
Post 3 of 74
Replying to [smfakse]:![[em15]](http://img.alibaba.com/images/eng/style/icon/emoticons_wish_you_wealth.gif)
CIF benefits you or the importer???
mostly the buyer is doing that in order for the goods to be safe in hand until it reach the destination, if theres anything happen that you or the the buyer does not expect, the insurance will safeguard the goods more likely; CIF is both beneficial for both of you.
It ensures your product to be in good terms while the comfort himself for not worrying that it will not reach in his destination.
In terms of payment; all the cost that you are going to pay for insurance will be back to you through marking up to the cost of the products and if the insurance cost had reach the minimal limit the buyer will pay the rest.
So no need for you to worry it is both beneficial for both parties.
i hope i had help you with my simple expanation...
Yala bye.....
Mary
CIF benefits you or the importer???mostly the buyer is doing that in order for the goods to be safe in hand until it reach the destination, if theres anything happen that you or the the buyer does not expect, the insurance will safeguard the goods more likely; CIF is both beneficial for both of you.
It ensures your product to be in good terms while the comfort himself for not worrying that it will not reach in his destination.
In terms of payment; all the cost that you are going to pay for insurance will be back to you through marking up to the cost of the products and if the insurance cost had reach the minimal limit the buyer will pay the rest.
So no need for you to worry it is both beneficial for both parties.
i hope i had help you with my simple expanation...
Yala bye.....
Mary
17 Sep 2006 21:42
Post 4 of 74
Replying to [smfakse]:
Importer benefits from CIF term having the inssurance for the delivered goods.For the countries like Romania it is O.K becouse he is not shure for the safety of the goods.
The difference between C+F and CIF is only that seller pays the insurance of the goods(you have to calculate it in your price), but the responsibility stays the same.The buyer undertakes the responsibility for the goods when the goods pass the ships rail.
You can see INCOTERMS 2000 edition.
Regards,
Alti
Importer benefits from CIF term having the inssurance for the delivered goods.For the countries like Romania it is O.K becouse he is not shure for the safety of the goods.
The difference between C+F and CIF is only that seller pays the insurance of the goods(you have to calculate it in your price), but the responsibility stays the same.The buyer undertakes the responsibility for the goods when the goods pass the ships rail.
You can see INCOTERMS 2000 edition.
Regards,
Alti
18 Sep 2006 01:44
Post 5 of 74
Replying to [smfakse]:
CIF means Cost+Insurance+Freight paid by the seller upto buyers destination. It means seller will give rates inclusive of Insurance upto the buyers destination and naturally exporter is safe from loss during the transit. Thus it will benifit equally to both parties because of safe side reason
CIF means Cost+Insurance+Freight paid by the seller upto buyers destination. It means seller will give rates inclusive of Insurance upto the buyers destination and naturally exporter is safe from loss during the transit. Thus it will benifit equally to both parties because of safe side reason
18 Sep 2006 02:31
Post 6 of 74
Replying to [smfakse]:
CIF means Cost, Insurance & Freight.
This Incoterm benefits the buyer as the insurance covers the loss of products (if it happens).
However, for you, it means a sligh increase as you have to foot the insurance premium on to of the Cost & Freight that you already incur.
It is worthwhile to quote CIF rather than CFR to sustain a long-term relationship with your client.
CIF means Cost, Insurance & Freight.
This Incoterm benefits the buyer as the insurance covers the loss of products (if it happens).
However, for you, it means a sligh increase as you have to foot the insurance premium on to of the Cost & Freight that you already incur.
It is worthwhile to quote CIF rather than CFR to sustain a long-term relationship with your client.
18 Sep 2006 05:48
Post 7 of 74
Replying to [smfakse]:
A very good question smafakse, I think that CIF term is benefit for buyer who want to ship the goods to some unsecured places.
A very good question smafakse, I think that CIF term is benefit for buyer who want to ship the goods to some unsecured places.
18 Sep 2006 19:59
Post 8 of 74
Replying to [smfakse]: cif terms can be a benefit to both buyer and seller but you must be very sure of what the insurance covers. you may find that if your insurance is port to port it will not cover losses inside Romania. Also, contrary to another comment the term CFR is not used in all industries in the Agriculture product business the term CNF or C&F are used more often since Incoterms are not used for much of the agriculture business.
19 Sep 2006 02:38
Post 9 of 74
Replying to [smfakse]:
You have done CFR price term with your customers, so insurance should be beared by your customer. you can send all detail shipment to your customers before the vessel leaving from loading port. so your customer can do insurance at his loacal countries.
If your customer worried about this question ,next time both of you should do CIF. Anyway , considering the risks during shippment, as an exportor, the best way is to do FOB.
my advise for your reference.
You have done CFR price term with your customers, so insurance should be beared by your customer. you can send all detail shipment to your customers before the vessel leaving from loading port. so your customer can do insurance at his loacal countries.
If your customer worried about this question ,next time both of you should do CIF. Anyway , considering the risks during shippment, as an exportor, the best way is to do FOB.
my advise for your reference.
19 Sep 2006 02:46
Post 10 of 74
Replying to [smfakse]:ALWAYS THE IMPORTER PAYS FOR THAT,EVEN THE EXPORTER PAYS FOR.MOST OF COUNTRIES HAVE INCLUDED THE FREIGHT AND FEES TO THE ADDITIONAL TAXES.IT MEANS DOES NOT MATTER CIF,C &F, CFR.
20 Sep 2006 05:42
Post 11 of 74
Replying to [smfakse]:
The insurance is added to the price of the goods.
You breakdown the CIF price to your client as :
C = Cost of the goods
I = Cost of Insurance
F= Cost of Freight![[em17]](http://img.alibaba.com/images/eng/style/icon/emoticons_shake_hands.gif)
The insurance is added to the price of the goods.
You breakdown the CIF price to your client as :
C = Cost of the goods
I = Cost of Insurance
F= Cost of Freight
20 Sep 2006 09:47