Import transport 2 termsINCOTERMS -CIF, CFR, CIP, | Easy explanation incoterms. #CIF #CFR #CIP #CPT - YouTube

Today we will discuss C-Type Incoterms.

You can see four different c types on screen .

I am showing you alibaba graph.

Now let us start with CIF, ITS FULL FORM IS COST INSURANCE AND FREIGHT.

CIF is one of the most used terms in import & export.

Now for example you want to purchase product from china then your seller will give you quotation.

CIF 1000 USD ,THIS MEANS cost of goods, insurance and freight till your nearest port.

In CIF responsiblity of your supplier is to load goods in truck at his factory, then do export custom clearance.

And then again he will load goods on ship.

Now freight of ship till it reaches your port is his responsibility, as well as all insurance till your port is in his scope.

Now from here your responsibilty starts, you have to unload your goods at your port.

You have to do all import clearance at your port and loading goods in truck for your warehouse is in your scope.

Now under CIF your seller is responsible from loading material at his factory till it reaches your port.

Till here all the feight and insurance in his scope.

When ship reaches your port, your responsibilty starts from unloading to transport at your factory .

You have to pay for all freight and material handling from here till your factory.

One disadvantage in this is sometimes your material gets damage while transportation and now insurance is in your supplier scope.

Now this gives additional job to handle your supplier for insurance claim.

Now another term is CFR this is same as CIF but here insurance is in buyers scope.

In this insurance is in your scope.

Dark blue line on graph shows negotiable points.

Another term is CPT

In this supplier will do all activities of CIF and his additional activity is he will load goods on truck at your port.

Another term is CIP, in this another extra responsibility is.

Your supplier will pay for truck freight till your warehouse if discussed.

But at your warehouse unloading is in your scope.

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