Quick Answer: What Is Cif In Logistics?

Cost, insurance, and freight (CIF) is an international shipping term that describes the seller’s responsibility for the cost of shipping, freight charges, and insuring the cargo being shipped via ocean or waterway. However, the buyer assumes responsibility for the goods once the cargo has reached the buyer’s port.

What is CIF means in shipping terms?

Cost, Insurance, and Freight (CIF) mean that the seller delivers the goods on board the vessel or procures the goods already so delivered.

What is CIF stand for?

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.

What is FOB and CIF in shipping?

Meaning: FOB means free on board. The price includes all the expenses incurred until goods are actually loaded on board the ship at port of shipment. CIF stands for cost, insurance and freight. CIF price includes free on board and charges of Freight and marine insurance.

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What is CIF condition?

Cost, Insurance and Freight (agreed port of destination) (CIF), maritime condition. The seller has fulfilled his obligation to deliver when the goods are placed / loaded on board of the (by the seller) nominated and named vessel at the port of departure. This is also equal to FOB and CFR.

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. Insurance is calculated as 1.125% – USD 13.00 (rounded off). The total amount of CIF value works out to USD 1313.00.

Who pays for CIF freight?

Under CIF the seller is responsible till the goods are loaded onboard the vessel and he also pays for the freight and insurance charges, while in FOB the seller is only responsible for getting the goods loaded onto the vessel and is not responsible for freight and insurance charges.

How many divisions are there in CIF?

There will be 16 teams completing in each of the 14 divisions, with the exception of Division 1, which could have a few as eight teams in its bracket. Teams competing in Division 1 will be the top teams in the CIF-SS, as determined by a Southern Section committee.

What means CPT?

Current Procedural Terminology (CPT) is a medical code set that is used to report medical, surgical, and diagnostic procedures and services to entities such as physicians, health insurance companies and accreditation organizations. CPT is a registered trademark of the American Medical Association.

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Which is better FOB or CIF?

It is advised to go with the FOB option for shipping as the buyer gets control over the shipping process and the costs are comparatively cheaper. Whereas in CIF shipping, since the seller has the authority over shipping charges and arranging a ship with the help of a freight forwarder, the cost is higher.

What is CIF value India?

(CIF) value is the actual value of the goods when they are shipped. As duties are calculated based on the CIF value, they must be calculated correctly. To find CIF value, the freight and insurance costs are to be added. 20% of the FOB value is taken as freight. It Means Rs.

What is CIF price in export?

CIF – COST INSURANCE AND FREIGHT (named port of destination): Seller must pay the costs and freight includes insurance to bring the goods to the port of destination. The seller must clear the goods for export.

What does DAP mean in logistics?

How Delivered-at-Place (DAP) Works. Delivered-at-place simply means that the seller takes on all the risks and costs of delivering goods to an agreed-upon location. This means the seller is responsible for everything, including packaging, documentation, export approval, loading charges, and ultimate delivery.

What is FOB and CNF?

There are two major terms of shipment widely used round the globe. These are freight on board (FOB) and cost net freight (CNF). A prepaid basis shipment means the buyer will pay the freight charges before the shipment occurs.

What is the difference between CIF and DAP?

As per Inco terms of shipping, DAP means Delivered at Place (named destination mentioned). The major difference between CIF and DAP is that the shipping term DAP is used in all modes of transport, where as CIF terms of shipping is used only for sea and inland water transport.

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