Difference between C&F C& I CIF
Monday, October 13, 2014     Category : For Beginners

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 ofDifference between C&F 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.


I 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.


Difference between C&F 1I 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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Service Tax - Click here to read complete notification under Budget 2014

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Comments

 
Himanshu Says :
Thursday, June 20, 2013
Pretty Useful, Thanks..
Ashish Says :
Sunday, September 29, 2013
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 Says :
Friday, October 04, 2013
I find it very much useful
Jason Says :
Tuesday, November 26, 2013
Superb..
Says :
Friday, December 13, 2013

fida hussain Says :
Sunday, December 22, 2013
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 Says :
Sunday, January 19, 2014
Very useful information thank you for clearing me
deependra Says :
Wednesday, February 12, 2014
just wow !!
Chathura Says :
Friday, February 21, 2014
Clearly explained, Many thanks..
 

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