History. However, a buyer may stipulate that the seller is responsible until the goods reach a port of import or even their final destination.
Last updated on June 29th, 2016To calculate the cargo insurance premium on a single shipment, enter the shipment value, cost of freight, extra expense percentage, and your cargo insurance rate. Cost, Insurance, and Freight (CIF) and Free on Board (FOB) are international shipping agreements used in the transportation of goods between a … Cost and freight (CFR) is a trade term obligating the seller to arrange sea transportation to a port of destination and provide the buyer with the documents necessary to obtain the goods from the carrier. The seller must deliver the goods to the ship within the agreed-upon timeframe. According to CIF Incoterms 2010 rule, the exporter must obtain, at its own expense, marine cargo insurance complying at least with the minimum cover provided by Marine Cargo Clauses (C) of the Institute Cargo Clauses (LMA "Lloyd's Market Association" / IUA "International Underwriting Association") or any similar clauses. CIF = FOB + Freight from port of Origin to the Port of Destiny + Insurance… Now I would like to give you an example to further clarify the subject. Consider this hypothetical example: Best Buy orders 100 containers of flat-screen televisions from Sony using CIF to Kobe, a Japanese port. Sony delivers the order to the port and loads them onto the Let me give some quick links for w... CIF determines when the responsibility for goods transfers from the seller to the buyer. Size 1 box is 24”Lx18”Wx12”H = 5,184 Cubic Inch = 3 Cubic Ft/box 3 Cubic Ft. x 500 boxes = 1,500 Cubic Ft = 42.47 Cubic Mts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
Cif is a French brand of household cleaning products owned by the British-Dutch company Unilever, known as Jif in Australia, New Zealand, Japan, Middle East and the Nordic countries [citation needed. In most cases, the seller's obligation ends once cargo loading is complete. CIF is different from cost and freight provision (CRF) whereby sellers are not required to insure goods in transit. Other typical expenses include customs duties, taxes, and the shipment of goods to their final location. On my previous articles I have explained how many pallets can be fitted in different types of containers. The goods will be shipped from FOB value of the goods are 96.000USD and the freight cost between Busan Port to Gothenburg Port is 3.820USD and insurance premium is 180USD. They must also give the buyer sufficient notice of delivery and provide proof of delivery and loading.
I have described above that the minimum type of cargo insurance, which must be provided by the exporter is Institute Cargo Clauses (C) under CIF deliveries. All rights Reserved CIF Value of Goods : 96.000USD, Freight: 3.820USD and Insurance:180USD: total CIF value is 100.000USD. Minimum Insurance Cover: 100.000USDx110=110.000USD; Please feel free to let us know your thoughts through your comments. Under delivered duty paid (DDP), the seller is responsible for the cost of transporting goods until customs clears them for import at the destination. CIF: Cost of handling on arrival at the (air)port or bulk-breaking platform : Customs duties % Import taxes % Cost of import Customs formalities (flat rate) Cost of carriage after (from the port (airport) to the buyer) Delivered Duty Paid : DDP * based on the CIF value CIF vs. FOB: An Overview . In order to calculate the minimum insurance cover, first of all we have to find the CIF value of the goods. The exact details of the sales contract will determine when the liability for the goods transfers from seller to buyer. Cost, insurance, and freight (CIF) is a common method of import and export shipping.