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kawal

kawal (Querist)
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19 March 2010 sir what is a full form & meaning of CIF & FOB??

udal

udal (Expert)
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19 March 2010 CIF- Cost, Insurance and Freight - a sales contract term indicating that price includes cost, insurance and freight.
FOB-Freight On Board-a sales contract term indicating that price Excludes cost, insurance and freight.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 March 2010 Dear Kawal,

CIF stands for Cost, Insurance & Freight. The cost of the goods plus insurance and freight charges, normally to the Port of Embarkation unless a different FOB point is specified.

FOB is an abbreviation for Free On Board. The term FOB (often seen as f.o.b.) is commonly used when shipping goods, to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to buyer. FOB shipping is the term used when the ownership/liability of goods passes from the seller to the buyer at the time the goods cross the shipping point to be delivered. FOB destination designates that the seller is responsible for the goods until the buyer takes possession. This is important in determining who is responsible for lost or damaged goods when in transit from the seller to the buyer. The buyer is responsible when shipped FOB shipping and the seller is responsible if shipped FOB destination. CAP, or customer arranged pickup, is used to denote that the buyer will arrange a carrier of their choice to pick the goods up and the liability for any damage or loss belongs to the buyer.

Regards