Tuesday, August 05, 2008

FOB & CIF

FOB is also known as Freight on Board OR Free On .Freight on board means that the exporter delivers the goods at the specified location. Example, FOB Kunming Airport the exporter delivers the goods at Kunming airport. This means exporter is bounce to deliver the goods at the Kunming Airport at his cost and expenses. In the case, the freight and other expenses for outbound traffic is bear by the importer.

CIF is also known as Cost, Insurance, and Freight.Insurance and Freight are all remunerated by the exporter to the particular location. Example, CIF Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles including the insurance).

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