CIF stands for Cost Insurance Freight CIF value

FOB (Free On Board), i.e., the free on board price at the port of shipment, refers to the seller's delivery of the goods to the ship designated by the buyer at the agreed port of shipment. In this term, the seller is responsible for the export formalities, the buyer is responsible for sending the ship to pick up the goods, and the division of costs and risks between the buyer and the seller is bounded by the ship's side at the port of shipment.

CIF (Cost Insurance and Freight) stands for Cost Insurance and Freight. According to this term, the price of the goods is composed of the usual freight and the agreed insurance premium from the transshipment port to the agreed destination port.

FOB (Free on Board).

The responsibility rests with the seller before the goods cross the ship's string.

Responsibilities of the seller: 1. The buyer should be notified in time after the goods are loaded (risk transfer) 2. All costs before shipment should be borne by the buyer.

3. Provide relevant documents and the expenses incurred in handling documents.

4. Provide documents to the buyer.

Buyer's responsibility: 1. Charter, book, notify the seller of the ship's name, voyage and shipping schedule, and pay the freight from the departure to the port of destination.

2. Bear all the risks after the goods cross the ship's chord and pay the insurance premium.

3. Handle all import procedures after the goods arrive at the port of destination and bear their costs.

CIF (Cost Insruance Freight).

Responsibilities of the seller: 1. Bear all costs and risks before the goods arrive at the port of destination.

2. The ship should be chartered and booked one month in advance.

3. After the goods are loaded, notify the buyer and pay the insurance premium, freight and all expenses incurred in the export.

Buyer's responsibility: 1. Pay the payment.

2. Handle the procedures for receiving goods and customs clearance.

FOB is commonly known as FOB price, and basically the buyer is only responsible for the cost of putting the goods at the port.

CIF is commonly known as CIF and the buyer is responsible for all the costs of transporting the goods to the buyer's designated port.

Others are CFR, EXW, CIP...A lot!

Find a book of international ** and you will understand it at a glance!

CIF USD.

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

How to calculate the insurance cost of CIF:

CIF=FOB + Insurance + Freight; Return.

Export cargo insurance premium = CIF price 110% insurance rate;

CIF=FOB + CIF price 110% insurance rate + freight; Answer.

CIF (1-110% insurance rate) = FOB + freight;

CIF=FOB + Shipping (1-110% insurance rate);

The amount of insurance for exported goods.

CIF 110%;

Premium = Sum Insured * Insurance Rate = (CIF Price 110%) * Insurance Rate.

If the transaction method on the import declaration form is CIF, then the freight and customs declaration do not need to be filled, if the export transaction method is CIF, then the freight and premium can be filled in according to the actual amount.

The declaration form must be filled in truthfully, and there must be no errors, let alone false declarations, concealment and false declarations. It is necessary to achieve two consistency: first, the documents are consistent, that is, the customs declaration form is consistent with the contract, approval, invoice, packing list, etc.; Second, the single goods are consistent, that is, the content reported in the customs declaration form is consistent with the actual imported goods.

Goods with different contracts, different names of means of transport, different ** methods, different exemption natures, and different license numbers cannot be filled in the same customs declaration form. The same customs declaration form cannot be filled in with a maximum of five customs statistics commodity numbers.

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

How to calculate the insurance cost of CIF:

CIF=FOB + Insurance + Freight; Return.

Export cargo insurance premium = CIF price 110% insurance rate;

CIF=FOB + CIF price 110% insurance rate + freight; A: CIF (1-110% insurance rate) = FOB + freight;

CIF=FOB + Shipping (1-110% insurance rate);

Insurance amount for export goods = CIF value 110%;

Premium = Sum Insured * Insurance Rate = (CIF Price 110%) * Insurance Rate.

Insurance premium = CIF * (1 + insurance mark-up rate) * insurance rate.

The mark-up is usually 10%. It can be 20% or any rate agreed upon by the guest.

It is generally the total CIF price multiplied by the insurance rate (generally 6/10,000-1/1000).

Answer]: CIF is an abbreviation for Cost, Insurance and Feight. CIF terminology indicates that the seller completes the delivery of the goods when the goods cross the ship's side at the port of shipment, and although the seller must pay the freight and charges required to transport the goods to the named port of destination, the risk of loss of or damage to the goods after delivery and any additional costs due to various events are transferred from the seller to the buyer.

At the same time, the seller must also take out marine insurance against the risk of loss or damage to the buyer's goods in transit under CIF** conditions, but it should be clearly stated that this insurance only requires the seller to take out a minimum insurance coverage. The term applies only to sea and inland waterway transport.

CIF: Cost Freight + Insurance.

CFR: Cost + Freight.

There are three of the most common delivery methods in international**: FOB (commonly known as FOB), CFR and CIF (commonly known as CIF price).

FOB Free on Board (......Specify the port of shipment).

Free on board (......"Named port of shipment)" means that the seller completes delivery of the goods when they cross the ship's side at the named port of shipment. This means that the buyer must bear all risks of loss of or damage to the goods from that point onwards. FOB terminology requires the seller to clear the goods for export.

The term only applies to sea or inland waterway transport. If the parties do not intend to deliver the goods over the side of the ship, the FCA terminology should be used.

CFR Cost & Freight (......Designated port of destination).

Cost & Freight (......Designated port of destination)" means that the goods are delivered at the port of shipment when they cross the ship's side of the ship, and the seller must pay the freight and costs required to transport the goods to the designated port of destination. However, the risk of loss of or damage to the goods after delivery, as well as any additional costs due to various events, is transferred from the seller to the buyer.

The CFR term requires the seller to go through export customs clearance.

The term only applies to sea or inland waterway transport. If the parties do not intend to deliver the goods over the side of the ship, CPT terminology should be used.

CIF Cost, Insurance & Freight (......Designated port of destination).

"Cost, Insurance and Freight" means that the seller completes delivery of the goods at the port of shipment when they cross the ship's side. 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 the CIF terminology only requires the seller to take out the minimum amount of insurance. 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 clear the goods for export.

The term applies only to sea and inland waterway transport. If the parties do not intend to deliver the goods over the side of the ship, the CIP term should be used.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

CIF = Cost + Freight + Premium.

How to calculate the premium, please stop me to see me.

To calculate the premium, you need to know the value of the goods.

Remarks: The value of the goods (invoice amount) is the national practice of import and export must be simplified, and the bureau must add a markup) exchange rate (foreign currency to RMB).

The rate (the ** discussed with the insurance company's salesman is the rate) import and export premiums:

Value of goods * exchange rate * rate = premium.

Domestic Premium: Value of Goods * Rate = Premium.

The general freight forwarder's rate to the factory** is a few thousandths.

The insurance company gives a few ten-thousandths of the money.

Hope my can help get you, thanks.

Extended reading: [Lazhao Insurance] How to buy, which one is good, teach you to avoid these insurance"pits"