Question: What Is The Meaning Of CIF CNF & FOB?

What is FOB and CNF price?

What does it mean to ship Freight on Board (FOB) as opposed to Cost Insurance and Freight (CIF) or just Cost and Freight (CNF).

CIF means they will pay for the cost, the insurance and the freight, where CNF means the consignee is responsible for the insurance only..

What is CIF and FOB?

Cost, Insurance, and Freight (CIF) and Free on Board (FOB) are international shipping agreements used in the transportation of goods between a buyer and a seller. They are among the most common of the 12 international commerce terms (Incoterms) established by the International Chamber of Commerce (ICC) in 1936.

Which is better CIF or FOB?

With CIF, responsibility transfers to the buyer when the goods reach the point of destination. In most cases, we recommend FOB for buyers and CIF for sellers. FOB saves buyers money and provides control, but CIF helps sellers have a higher profit.

How is CIF value calculated?

CIF (Cost, Insurance, Freight) value is the total value of “Invoice value + Insurance + Freight + Ex-work charges (If any)”. Note:- The above calculation is for FOB & Ex-Work shipments.

What is CNF payment?

CNF stands for Cost and Freight. This means the supplier of goods is responsible for the freight-related charges. The buyer of the products is responsible for organising and paying the insurance on the goods. CNF is also known as C&F and CFR.

What does CIF mean?

Cost, insurance, and freightCost, insurance, and freight (CIF) is an expense paid by a seller to cover the costs, insurance, and freight of a buyer’s order while it is in transit. The goods are exported to a port named in the sales contract.

What is difference between CNF and CIF?

For CIF, the price also includes sea freight charges and insurance to deliver the goods to YOUR nearest port. … From that point onwards, it’s up to you to take responsibility for the shipment. CNF — Cost and Freight (or Cost, No Insurance, Freight) CNF is similar to CIF, except insurance is not included.

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.

How is FOB value calculated?

Transportation up to Customs + Customs clearance + unloading charges + Loading Charges + Local Insurance = FOB. + Loading Charges on ship vessel = 4000/- is equal to = FOB Price.