Can't tell the CIF price? FOB price? Let's talk about it together!

International goods trade price terms can be expressed in simple, highly modeled trade terms, which are used to explain the respective responsibilities, risks, costs and price components of buyers and sellers in the transaction. The main manifestations are: FOB, CIF, CFR, CIP, FCA ...Can't tell the price of CIF? FOB price? Today I will take with you, my foreign trade friends.



The first is the CIF price.
In the customs data, the full name of CIF in English is Cost, Insurance and Freight, which means cost plus insurance plus freight (designated port of destination). CIF refers to the CIF, which is the price at which the goods arrive at the port of destination. CIF usually refers to FOB + freight + insurance premium. The seller shall be responsible for transportation to the designated place (usually designated port of arrival or designated place inland). When the goods cross the ship's rail at the port of shipment, the seller will complete the delivery. The freight insurance premium of the goods from the port of shipment to the destination port is paid by the seller, but the risk of damage and loss after the goods are shipped is borne by the buyer.

The second is the FOB price.
FOB, its full English name is free on board, it means delivery on board (designated port of shipment), refers to the ship's delivery price, which is generally referred to as the FOB price. Refers to the price at which the goods arrive at the port of shipment. The seller is responsible for the shipment to the designated port, and the seller completes the delivery of the goods across the ship's side at the designated port of shipment. From this point, the risk of loss or damage of the goods is borne by the buyer. Freight and insurance costs are the responsibility of the buyer.

What price is used in the transaction is generally determined through negotiation between the buyer and the seller.
The main difference between CIF price and FOB price: The difference between CIF and FOB usually refers to the transportation and insurance costs from the port of departure to the port of destination. The freight rate can be directly established with the transportation company according to the amount of goods and the mode of transportation. The insurance premium is calculated according to the insurance premium rate given by the insurance company.