How is the CIF price calculated? How to calculate CIF price

Fugang Bank has served a large number of foreign traders to collect the problem, CIF is the abbreviation of ** term: cost + insurance + freight, (designated port of destination, its original text is cost, insurance and freight(insert named port of destination) according to this term.

The constituent factors of the price of the goods include the usual freight and the agreed insurance premium from the port of shipment to the agreed port of destination, so the seller, in addition to the same obligations as the CFR terminology, must also apply for freight insurance for the buyer, pay the insurance premium, according to the general international practice, the seller should add 10% of the insurance amount according to the CIF price. If the buyer and the seller do not agree on a specific insurance, the seller only needs to obtain the minimum insurance coverage, if the buyer requests additional war insurance, the seller shall be insured on the premise that the insurance premium is borne by the buyer, and when the seller can do so, it must be insured in the contract currency.

CIF calculation formula:

CIF total price = (FOB unit price * quantity + total shipping and other miscellaneous charges) [1 - (1 + insurance markup) * insurance rate].

Note: The total shipping cost and other miscellaneous expenses, you can calculate the freight and other non-refundable expenses in this item, such as profits, etc., but it should be noted that it must be converted into US dollars, and exchange rate fluctuations will also affect the final **.

The conversion is as follows: CIF** = CFR** + insurance premium = FOB price + freight + insurance premium.

Among them, the insurance premium = the insured amount * the insurance rate.

Whereas. Sum Insured = CIF Price * (1 + Surcharge).

According to the above formulas, you can convert it yourself, and the difference between the two formulas you give is that the calculation method of the insurance amount is different.

You just have to remember how to calculate.

Supplement: Generally, it is calculated according to the following formula, and it is customary to take 10% of the insurance markup, that is, the insurance amount is 110% of the CIF price

Hello lz. CIF price = value of goods + sea freight (miscellaneous expenses) + insurance premium.

It should be spread the freight into the unit price of the goods, the boss is black-hearted, he doesn't care what the CIF price, the higher the better.

There is also the insurance cost, which is the sum of the cost, plus the insurance premium, and the freight.

Insurance and freight are not a lot of them, you can ask the freight forwarder.

The Chinese translation of the CIF term is cost, insurance and freight(insert named port of destination) according to this term, the constituent factors of the price of the goods include the usual freight from the port of shipment to the agreed port of destination and the agreed insurance premium, so the seller has the same obligations as the CFR terminology, and also handles freight insurance for the buyer. To pay the insurance premium, according to the general international practice, the seller should add 10% of the insurance amount according to the CIF price. If the buyer and the seller do not agree on a specific insurance, the seller only needs to obtain the minimum insurance coverage, if the buyer requests to insure the war insurance, the seller should increase the insurance on the premise that the insurance premium is borne by the buyer, and the seller is late in applying for insurance, if it can do so, it must be insured in the contract currency.

It should be emphasized that although the seller arranges the transportation of the goods and handles the freight insurance, the seller does not undertake the obligation to guarantee the delivery of the goods to the agreed port of destination, because CIF is a term for delivery of shipment, not a term for delivery at the port of destination, that is, CIF is not a "CIF rate".

CIF CIF"Cost, insurance and freight"Delivery is made when it is loaded onto the carrier's vessel at the port of shipment.

CIF usually refers to FOB + Freight + Insurance.

C&F (CFR) is different from CIF, C&F: Cost and Freight, refers to cost + freight, followed by the name of the destination port, that is to say, the freight must be calculated to the destination port, and the responsibility also ends at the loading port.

C&F (CFR) usually refers to FOB + shipping cost. The Seller must pay the freight and costs required to transport the Goods to the named port of destination, but the risk of loss of or damage to the Goods after delivery and any additional costs due to various events shall be transferred from the Seller to the Buyer. However, under CIF conditions, the seller must also take out marine insurance against the risk of loss or damage to the buyer's goods in transit.

Therefore, it is up to the seller to conclude the insurance contract and pay the premium. The buyer should note that CIF terminology only requires the seller to take out the minimum amount of insurance coverage. If the buyer requires a higher level of insurance, it will need to make an explicit agreement with the seller or make additional insurance arrangements on its own.

CIF terminology requires the seller to go through the customs clearance for the export of the goods and the buyer to go through the customs clearance for the import of the goods.

The term applies only to sea and inland waterway transport. CIP terminology should be used when the parties do not have an obligation to load the ship.

Tariff = Total CIF price x Tariff rate.

VAT = total CIF price x (1 + duty rate) x VAT rate.

Generally 17%);

Taxes and fees refer to taxes and fee taxes, and taxes are a form of mold for the state to participate in the distribution of social products compulsorily and without compensation in accordance with its social functions and in accordance with the law in order to meet the public needs of society. Taxes and fees refer to the fees charged by state organs for providing specific labor services or services to relevant parties.

The difference between taxes and fees is: taxes are collected free of charge, and fees are paid; The tax shall be levied by the tax authorities, financial authorities or customs, and the fees shall be collected by the state administrative departments or public institutions; The tax shall be stamped with the seal of the local tax authority, and the fee shall be stamped with the official seal of the administrative department or public institution; The tax is included in the ** budget and the local budget are arranged for use in a unified manner, and the expenses are arranged to meet the needs of the local operating expenses of the department.

The benefits of tax reform are as follows:

1. The implementation of fee to tax can increase fiscal revenue.

Enhance the ability to regulate and control national income at the macro level. Due to the existence of fees**, the state has insufficient funds for early disposal, and it is difficult to alleviate the financial dilemma. Due to the confusion of the collection of fees, a large number of fees and charges have flowed into the field of national income distribution, and most departments have also carried out the distribution of national income and participated in the distribution.

For example, most of the managers in highway tolls rely on tolls to spend, as well as environmental protection departments and industrial and commercial departments. Therefore, the implementation of the fee reform tax can bring the scattered income of local departments into the fiscal track, and the state can concentrate scattered funds to support the development of economic and social undertakings and carry out macroeconomic regulation and control as a whole.

2. The implementation of fee to tax can play a role in punishing corruption and establishing an efficient and honest government. in a market economy.

Under the conditions, the income of the party mainly depends on taxes, and the current fees and the existence of the first project have reduced the revenue of the finance, bred corruption, and damaged the image of the party and the party. In this case, the implementation of fee to tax is to cancel the gray income of ** and put the income of ** into the track, so as to increase the disposable income of the government. Of course, in this regard, the state should take measures to reform the first-class institutions, allocate sufficient funds, and implement a reasonable increase mechanism for the salaries of civil servants.

Implement the reform of fees into taxes, limit the collection of fees outside the system, eradicate the conditions for corruption, and provide conditions for the establishment of efficient and honest enterprises;

3. The implementation of fee to tax can reduce the burden of taxpayers such as enterprises and farmers. In the case of compulsory fees, fees are rights, fees are laws, fees are higher than taxes, and there are many departments and projects that charge fees, such as an individual pork line, in addition to paying taxes, but also to pay various fees, in this case, greatly increasing the burden of taxpayers, causing dissatisfaction among enterprises and taxpayers. The implementation of the fee reform tax has abolished unreasonable fees, mainly to abolish some phenomena that have no legal basis, all kinds of arbitrary fees, and arbitrary fund-raising, which can not only reduce the burden on taxpayers, but also promote the tertiary industry.

development.

CIF**) landed **: Chinese means cost plus insurance plus freight. (Specified Purpose Port) means that the seller completes delivery of the goods when they cross the side of the ship at the port of loading (actually in the hold of the ship).

The seller shall pay the freight and insurance premiums of the goods from the port of shipment to the port of destination, but the risk of damage and loss of the goods after loading on board the ship shall be borne by the buyer.

Key points of landing**:

Applicable mode of transport: sea and inland waterway transport, ** country (seaport or river port where the goods finally arrive). Key points: The risk point and delivery point are on the ship at the port of departure, and the cost is divided into the port ship at the port of destination.

For a long time, people have been accustomed to refer to the FOB condition in the international ** as FOB**, and thus also refer to the CIF as the CIF price that includes freight and insurance in the term.

Even in some regular ** articles, such statements appear from time to time. For example, when talking about the competitiveness of Chinese soybeans in the international market, it is often reported that the FOB price of Chinese soybeans is higher than the "CIF price" (CIF) of imported genetically modified soybeans from abroad.

Difference Between CIP and CIF:

CIF is suitable for water transportation, where the place of delivery is at the port of shipment, and the risk is assigned to the side of the ship at the port of shipment.

The seller is responsible for chartering the ship, paying the freight from the port of shipment to the port of destination, and applying for water transportation insurance and paying the insurance premium.

CIP is applicable to all modes of transportation, the place of delivery should be agreed by both parties according to the different modes of transportation, the risk is transferred when the carrier controls the goods, and the insurance handled by the seller is not only water transportation insurance, but also includes various transportation insurance.

Responsibilities and obligations of the CIF seller: responsible for chartering and booking, loading the goods on board the ship within the specified port of shipment and time limit, and paying the freight for the goods to be transported to the port of destination, and notifying the buyer after the goods are loaded. Bear all the costs and risks of the goods before they cross the ship's side at the port of shipment, handle freight insurance, and handle export customs clearance procedures.

Responsibilities and obligations of the CIF buyer: bear the risks and expenses of the goods after the goods cross the ship's side at the port of shipment, go through the import customs clearance procedures, accept the documents or electronic messages provided by the seller, and pay the price according to the contract.