et 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
buyers 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 sellers 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.

CIP (CARRIAGE AND INSURANCE PAID TO)

"Carriage and Insurance paid to..." means that the seller delivers the goods to the carrier nominated by
him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named
destination. This means that the buyer bears all risks and any additional costs occurring after the goods
have been so delivered. However, in CIP the seller also has to procure insurance against the buyer's risk
of loss of or damage to the goods during the carriage.

Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note
that under the CIP term the seller is required to obtain insurance only on minimum cover. Should the
buyer wish to have the protection of greater cover, he would either need to agree as much expressly with
the seller or to make his own extra insurance arrangements. "Carrier" means any person who, in a
contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air,
sea, inland waterway or by a combination of such modes. If subsequent carriers are used for the carriage
to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The
CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mode
of transport including multimodal transport.