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Reviews of foreign trade in the difference between CIF and FOB, and the pros and cons 0 replies,3398 views

Foreign trade in the difference between CIF and FOB purchase and operation of the pros and cons of the industry in the foreign trade in terms of two easily confused, CIF and FOB the responsibility easily be ignored, the following us look at the difference between them and the pros and cons. The difference between FOB and CIF, and advantages and disadvantages of FOB (free on board): the FOB (but when dealing with the North American countries, should be indicated in the FOB FOB behind + vessel) Therefore, the seller in the contract for the time and shipping port, the goods will meet the contract specified by the buyer on board, and promptly notify the buyer can be. After the seller has nothing to do with freight and insurance. CIF (cost, insurance and freight): the cost of shipping plus insurance, by definition is more than the CFR provisions of the insurance costs. That the seller should be responsible for making the shipment to destination from the transport contract and pay the normal transport costs, in CIF terms the seller also is responsible for cargo insurance, pay the appropriate premium. The same two points: 1) place of delivery of these articles are in the port of shipment, and are applicable to water transportation. 2) Even the CIF cost of insurance charge, but the risk is transferred to the port of shipment ship for the sector. In other words, over the side of the boat, no matter what the seller had. 3) In order to clarify shipping costs, or discharge the burden of fees, in order to allow simplification of complex transactions, these three terms have their corresponding deformation. 4) contracts traded by these terms belong to the contract of shipment (shipment contract). Advantages and Disadvantages: Select the FOB price of the transaction, shipping and insurance in the unstable market conditions, fluctuations in their favor. But there are many passive areas, such as: delay to send vessels as importers, or for a variety of situations lead to shipment delays, vessel name changes, it will enable exporters to increase the cost of warehousing and other expenses, or is caused by late receipt of payment loss of interest. Exporters on export control of goods in FOB conditions, due to contact with the carrier to send vessels importers, the goods once the shipment, the exporter even if you want to resell the goods in transit or destination, or take other remedial measures , will be consuming a number of twists and turns, resulting in more costs. CIF price in the export conditions, the interface between the cargo can be a better solution, so exporters have more flexibility and mobility. Under normal circumstances, as long as the shipment by the exporter to ensure conformity with the contract, as long as the documents submitted are complete, correct, the importer must pay. Goods over the ship's side, even when the importer pay damage or loss of goods, the importer has not refused to pay money for damage to cargo. That is, the CIF price of the export turnover of the contract is a specific type of "documents dealing" contracts. A smart exporters, not only to be able to grasp the quality of their goods sold, quantity, and should seize the cargo to its destination and collect money every step of the process. For the loading, transport, cargo risk control should be possible to obtain a certain degree of control over the profitability of such trade is guaranteed. Keywords: CIF: Cost, Insurance and Freight. FOB: international trade is one commonly used in trade terms. The full text of FOB is Free On Board (named port of shipment), the FOB (FOB), commonly called FOB. Action: implementation, implementation. Reference Source: Alibaba elite businessmen Forum Trade Forum search cargo net
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