What does CIF mean?

Cost, insurance, and freight (CIF) is an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer's order while the cargo is in transit. Cost, insurance, and freight only applies to goods transported via a waterway, sea, or ocean.

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 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)

Does CIF include customs clearance?

No, it's the buyer's responsibility. CIF does not include any import duties, VAT, or taxes. It does include all export requirements. Under CIF, the seller must export and pay the costs to ship to your destination port, but you must import and pay all costs associated with the importation.

What does it mean CIF in shipping?

CIF, or Cost, Insurance, Freight, is an international trade term that describes a contract in which the seller is responsible to cover transport to the port of origin, main carriage, and minimum insurance.

Understanding the Correct Point of Delivery in CIF Incoterms

How is CIF price calculated for import?

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).

How can I get my CIF number?

How to Find a CIF Number? Customer Information File Number is usually available on the passbook or in the chequebook of some banks. It is usually on the first page of the passbook or the chequebook.

Is CIF more expensive?

Buyers generally consider FOB agreements to be cheaper and more cost-effective. That's because they have more control over choosing shippers and insurance limits. CIF contracts, on the other hand, can be more expensive.

What costs are included in CIF?

Cost, insurance, and freight (CIF) is an international commerce term and only applies to goods shipped via a waterway or ocean. With cost, insurance, and freight, the seller covers the costs, insurance, and freight of a buyer's order while in transit.

What are the advantages of CIF?

Advantages and Disadvantages of CIF – Cost insurance and Freight. The advantage to the seller is that it can often obtain cheap insurance and then build a larger amount into its selling price. The advantage to the buyer is that it does not have to worry about declaring the shipment to its own insurer.

Why is insurance 110%?

Why insure 110% and not 100%? This is the most commonly asked question. The insurance companies allow you to use the additional 10% to help in expediting production of the replacement, or to help pay for airfreight of the new part, or to pay penalties for late deliveries.

Who is responsible for insured cargo carried by ship?

Usually the party responsible for delivering the freight is responsible, whether they are the buyer or the seller. In many cases goods will be insured when they are delivered by truck, but only at a marginal per pound rate. It may be a good idea to purchase additional coverage.

Who is responsible for shipping insurance?

Quite simply, it's what the carrier is responsible for when it comes to shipment losses, damages and delays. However, there are exceptions – 17 to be exact, including: any loss or damage resulting from an act of the shipper (that's you);

What does CIF stand for in high school sports?

The California Interscholastic Federation (CIF) is the governing body for high school sports in the U.S. state of California. CIF membership includes both public and private high schools.

Who pays for unloading under CIF?

Under the CIF Incoterm, the seller agrees to 1) pay for all the costs related to moving goods to a destination port of the buyer's choosing and 2) insure the goods until they arrive at that port.

How is customs duty insurance calculated?

In order to get your CIF, simply add the cost of the items imported, the insurance value (0.5% of FOB), and the cost of transportation, which is Freight. VAT = 7.5% x (CIF + ID + Surcharge + CISS + ETLS).

Can CIF be used for air freight?

CIF: Cost, Insurance, Freight

The Incoterm CIF stands for Cost, Insurance, Freight and is only used in sea freight forwarding.

Who pays for shipping on FOB?

FOB freight prepaid and allowed specifies that the seller is obligated to pay the freight transportation charges and owns the goods while they are in transit. The seller assumes the risk of loss of or the damage of goods during transit. The title of goods passes to the buyer at the buyer's business location.

Which Incoterm is best for buyer?

What is FOB Alibaba?

Free on Board (FOB) is an Incoterm which dictates the shared responsibility between buyer and seller. A standard FOB arrangement states that the responsibility for the goods remains with the seller as far as the port selected for shipping.

How can I get 10 digit CIF number?

Central Bank of India CIF Number consists of 10 digits. And it can easily be found in your Passbook, Cheque book, e-statement.

Where is CIF number in ATM card?

Next to your account number, CIF number will be displayed.

Is CIF number same as customer ID?

There is no difference between CIF Number and Internet Banking Customer ID. This is to remember that account number is different than CIF number. All the accounts opened by the same customer will be linked to his CIF number.

Do I have to pay import tax from China to UK?

If you import from China to the UK, you're required to pay VAT together with the total sum of import duty and customs value. In this case, Customs Value equals the total cost of the imported products including any import duty fee, supplier cost and shipping from China to the UK cost.