What does CIF destination port mean?

Cost, insurance, and freight
Cost, insurance, and freight (CIF) is an international commerce term and only applies to goods shipped via a waterway or ocean. Once the cargo has been delivered to the buyer’s destination port, the buyer assumes responsibility for the costs of importing and delivering the goods.

Is CIF FOB destination?

The abbreviation CIF stands for “cost, insurance and freight,” and FOB means “free on board.” These are terms are used in international trade in relation to shipping, where goods have to be delivered from one destination to another through maritime shipping. The terms are also used for inland and air shipments.

What’s the difference between FOB and CIF?

The main difference between CIF and FOB is the party that is responsible for the goods while they are in transit. With a CIF agreement, the seller is liable for the goods during transit, and with a FOB, the buyer is liable for the goods during transit.

What does CIF 10% mean?

Q: What does “CIF+10%” mean? A: CIF+10% stands for: C = Cost/invoice value (purchase cost if your client is the buyer, or selling price if they are the seller) I = Insurance premium. F = Freight and associated charges (e.g. customs clearance charges)

How is CIF calculated?

In order to find CIF value, the freight and insurance cost are to be added. 20% of FOB value is taken as freight. Means USD 200.00. Insurance is calculated as 1.125% – USD 13.00 (rounded off).

What is FOB destination?

FOB (Freight On Board) Destination is a shipping term that means that the legal title to the goods remains with the seller until the goods reach the location of the buyer.

Does CIF include import duty?

CIF includes duty and charges, where the seller assumes responsibility for export customs proceeding and the buyer for import customs.

What is CIF value in import?

Cost, Insurance, and Freight Import Value (C.I.F.) – This value represents the landed value of the merchandise at the first port of arrival in the importing country. It is computed by adding “Import Charges” to the “Customs Value” and therefore excludes import duties.

What is CIF Incoterms?

CIF stands for Cost, Insurance and Freight, a commercial rule under incoterms 2020 wherein the expenses are borne by the seller — from delivering goods and bearing settlement charges for carriage and insurance till the designated port.