Difference between C&F C& I CIF

What is the difference between C&I and CIF or C&F.

  

Let us find out what is CIF,C&I and C&F. How to distinguish CIF, C&F and C&I 

 

What is C&I terms of delivery in export business? C&I means, the price of sale of goods include cost of goods and Insurance. Means, the selling cost of goods agreed with buyer and seller includes the cost of goods with Insurance cost to deliver the goods to buyer’s place.


Difference between C and F C and I CIFI will explain C&I terms of delivery with a simple example. You are a Machinery seller situated in a place near Mumbai, India. The buyer is situated in New york. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on C&I price of USD 2350. Here the selling cost of goods is USD 2350 C&I . As I have explained, all further cost to reach the goods to the buyers place has to be met by the buyer. As per the instruction given by the buyer, the carrier contact     his counterpart in Mumbai and arrange pick up of goods from seller’s factory. Seller delivers goods to the freight forwarder after confirming the authenticity of the freight forwarder through his buyer. All expenses of freight forwarder will be paid by the buyer. You (seller) arrange insurance and send insurance certificate to the buyer.

How C&F terms works in Export business . What is CFR terms. C&F,CNF or CFR means Cost & Freight. Here, the selling cost of export sale includes cost and freight of goods.


I will explain CFR ( also called CNF and C&F) terms of delivery with a simple example. You are a Machinery seller situated near Mumbai, India. The buyer is situated in New york. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on C&F New York price of USD 5700. Here the selling cost of goods is USD 5700 C&F New York. Here the seller arrange to carry the goods to Mumbai port and meet all expenses including customs clearance in Mumbai and pays the ocean freight or airfreight up to New York. In this case, the seller decides the shipping company or airlines to move goods from Mumbai to New York, as he is paying freight of consignment. In other words, all delivery expenses up to New York is borne by the seller. The buyer takes delivery of cargo after customs clearance in New York at his own cost. Insurance of the goods is met by the buyer in case of C&F transaction.


What is CIF terms in Exports. How CIF terms works.


In CIF terms of delivery in export business, Cost Insurance and Freight included in the selling cost of goods.
I will explain CIF terms of delivery with a simple example. You are a Machinary seller situated in Mumbai, India. The buyer is situated in Newyork. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on CIF New York price of USD 5750. Here the selling cost of goods is USD 5750 CIF New York. You (the seller) arrange to carry the goods to Mumbai port and meet all expenses including customs clearance in Mumbai and pays the ocean freight or airfreight up to New York, by appointing a shipping line or airlines. In other words, all delivery expenses up to New York is borne by the seller. Apart from the same, in CIF terms of delivery, Insurance of goods also must be arranged by you as a seller. Once reached the cargo in New York, the buyer takes delivery of cargo after customs clearance at his own cost after paying duties or tax if any.  You can learn more about CIF by clicking here.  Also read :  Difference between CIF and CPT in shipping terms,    Difference between CPT and CIF in shipping terms 

 

 


I hope, the above clarifies the term CIF,CFR and C&I.

Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read. 

 

Did you satisfied with the difference between CFR,CIF and C&I. Write your opinion below.

 

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Comments


Himanshu: Pretty Useful, Thanks..

Ashish: This is an awesome article. It helped me in the best way to learn what this terms mean. Thanks a ton for posting the same !!! :)

masum: I find it very much useful

Jason: Superb..

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fida hussain: it was a visual explanation with appropriate examples, which helped a lot to understand the concept with very good perception. it is self explanatory teaching one page described matter. thanks.

suresh nagarajan: Very useful information thank you for clearing me

deependra: just wow !!

Chathura: Clearly explained, Many thanks..

M Hadia: Absolutely clear Thank you

paresh murudkar: thanks sir, what is the licence process C&F...what documentation required..?

Masood Ahmed : Really it's a very useful information to get the knowledge of import a D export, actually we are the exporter so usually I will get the information from this website

Nikki Anike: What is another name for cost in cost insurance and freight? I need one word for cost please

Sharp Petrochem : I am Iqbal Memon having recycle plant of Oil in India. and Havin experience in OIL business for the last 37 years I also buy Imported Oil in Domestic Market and Trade Locally.I found huge demand of imported Oil in Various Industry so I am planning to enter in Import Business of Base Oil Product Name SN 150 and SN 500 from Various Gulf Countries.I have Contact various Refineries In Middle East but I dont know How Calculate price...what is CNF and CIF rate... How to approach Custom Clears company and also I want to know that what is the complete duty of these Base oil in INDIAN Custom Department Kindly help me to start this business by giving me knowledge about above

Admin: Hi Iqbal Memon, Please read our posts in Imports section

anshul: hi .. your blog is really good .. can you tell how can i print all the matter on this blog chapter wise /sequence wise ?? or is there is any book available..

K.Thura.T: I would like to know, what is mean sea freight (to ... destination) ? same with CIF or FOB or CNF or CIP?

Ali Impex co: Thank you you clear every things about import and export we are also importer and exporter from 15 years

Muhammed Hasan: Thanks for your clear and precise article on C&I, C&F and CIF.

richard: Dear sir What is the process of c&f and what is the documents required for start the business

m.prabhakaran: cnf mean in tamil pls send for good export use

Maulik savani: Excellence nd bigest thanks for freely guide.!! JUST WOW!!!

Mayank: Kindly confirm is "C&I" a incoterm ? Incase we have made shipment on term C&I and buyer has paid for ocean fright and other costs. Upon reaching goods at destination there is damage in goods when buyer has received the goods, can this be covered under Marine Policy ? Voyage: From anywhere in India to anywhere in world Coverage: All Risks + War & SRCC

asri: Is there a chart that can elaborate and simplified all terms used?

Imran : Excellent all terms have been understand. Thanks.

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