What Is The Difference Between CIF Price, CIP Price And CFR Price?

The CIF requires the seller to go through the customs declaration procedures for the export of goods, and the buyer to go through the customs clearance procedures for the import of the goods, which is only applicable to shipping and inland transportation. If the parties do not assume the obligation to ship, they should use CIP. First, let's take a look at the CIP price. CIP, the full English name of "carriage and insurance paid to", refers to the delivery of the seller to its designated carrier. During this period, the seller must pay the freight for the delivery of the goods to the destination, and insurance against the risk of loss or damage of the buyer's goods during transportation. That is, the seller bears all risks and additional costs after delivery. The difference between CIF and CIP: CIP and CIF have similarities. Their price structure includes the usual freight and agreed insurance premiums, and the contracts concluded under these two terms are all shipping contracts. But CIP and CIF term in place of delivery, the boundaries of risk and liability and expenses to be borne by the seller side also has the obvious difference, mainly displays in: CIF is applicable to water transport, place of delivery at the port of shipment, which divided the ship's rail at the port of shipment is bounded, the seller is responsible for charter booking, payment of freight from the port of shipment to the port of destination, and deal with water transport insurance, pay insurance premium. The CIP term applies to a variety of modes of transport, the place of delivery should be different according to the mode of transport, agreed by both parties, the risk is to be transferred when the carrier controls the goods, the insurance that the seller deals with, it is not only water transport insurance, still include a variety of transport insurance. The second is the difference between CFR price and CIF price. CFR, its full English is cost and freight, refers to cost + freight, followed by the name of the destination port, that is to say, the freight should be counted to the destination port, and the responsibility ends at the loading port. CFR usually means FOB+ freight. The seller shall pay the freight and expenses for the delivery of the goods to the named port of destination, provided that the risk of loss or damage of the goods and any additional costs arising out of various events shall pass from the seller to the buyer. However, under the CIF condition, the seller must also provide the buyer with Marine insurance against the risk of loss or damage of the goods in transit.

Related Articles

0 views0 comments

Recent Posts

See All

EXIM CHAPTER

DELL INTERNATIONAL SERVICES LTD.

EXIM CHAPTER

DDELL INTERNATIONAL SERVICES LTD.

EXIM CHAPTE

RDELL INTERNATIONAL SERVICES LTD.