incoterms fob and cif

Incoterms FOB (Free On Board) … named port of departure FOB - FOB is a term of international trade, is expressed in Incoterms. - It means “free on board”. - It similar to FAS, but sellers need to pay cost of loading. - The transfer of risk occurs when goods overcome ship’s rail at loading port. - This term specify loading port. - It can be used only for sea and inland waterway transport. Seller’s obligations - Take export license, pay for tax and export cost (if needs) - Deliver goods on board. - Provide perfect transport documents to prove goods is loading on board. - Pay cost of loading Buyer’s obligations - Make transport contract and pay cost. - Pay cost of loading on board. - Take Bill of Lading (B/L) - Pay unloading costs. - Accept all risks and loss of goods when goods overcome the ship’s rail at loading port. The difference between FOB 2000 and 2010 - According to FOB 2000, the ship’s rail is the boundary to divide the increase of risks and costs between sellers, buyers and critical point (point on the ship’s rail at port of shipment). - Sellers must deliver and buyers must receive goods on ship’s rail at port of shipment. The difference between FOB 2000 and 2010 (continue) - The risks and costs handed over between sellers and buyers is carried out on the ship’s rail. - According to FOB 2010, is defined clearly on deck. - It means goods is overcome the ship’s rail and is arranged on deck. CIF (Cost, Insurance and Freight) …named port of destination CIF  It means that the sellers delivers when the goods pass the ship’s rail in the port of shipment  The sellers must pay the costs and freight necessary to bring the goods to the named of port destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the sellers to the buyers. CIF  However, in CIF the seller is also has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage.  The sellers contracts for insurance and pays the insurance premium.  The buyers should note that under the CIF term the sellers is required to obtain insurance only on minimum.  This term required the sellers to clear the goods for export. [...].. .CIF - If the buyers want to be insurance on higher level, the buyers must either need to agree as much expressly with the sellers or to take own extra insurance agreements - It can be used only for sea and inland waterway transport - If the parties do not intend to deliver the goods across the ship’s rail, . must deliver and buyers must receive goods on ship’s rail at port of shipment. The difference between FOB 2000 and 2010 (continue) - The risks and costs handed over between sellers and buyers. port. The difference between FOB 2000 and 2010 - According to FOB 2000, the ship’s rail is the boundary to divide the increase of risks and costs between sellers, buyers and critical point (point. Incoterms FOB (Free On Board) … named port of departure FOB - FOB is a term of international trade, is expressed in Incoterms. - It means “free on board”. - It