Can CIF be used for air freight?

CIF cannot be used for air freight. CIF is only designated for ocean freight and waterway shipments. Buyers and sellers wishing to use CIF for air shipments can substitute CIF for CIP, which stands for carriage insurance paid to the destination.

What does CIF air mean?

cost, insurance and freight
The abbreviation CIF stands for “cost, insurance and freight,” and FOB means “free on board.” These are terms are used in international trade in relation to shipping, where goods have to be delivered from one destination to another through maritime shipping. The terms are also used for inland and air shipments.

What does CIF mean in customs?

Cost and Freight Cost
Cost and Freight Cost Insurance Freight Under Cost and Freight (CFR) and Cost Insurance Freight (CIF), the seller is responsible for arranging and paying for the main carriage.

What does CIF and CNF mean in shipping terms?

These international commerce terms or incoterms are used to determine when each side, shipper and consignee, will take responsibility for the shipment. CIF means they will pay for the cost, the insurance and the freight, where CNF means the consignee is responsible for the insurance only.

Which is better CIP or CIF?

So in most of the cases, the insurance premium under CIP terms could be more than CIF terms. Under CIF terms, the risk of seller passes to buyer when goods gone onboard the vessel. But under CIP terms, the liability on risk fulfills by buyer immediately up on delivery of goods to first carrier of goods.

How is CIF calculated?

In order to find CIF value, the freight and insurance cost are to be added. Insurance is calculated as 1.125% – USD 13.00 (rounded off). The total amount of CIF value works out to USD 1313.00. If any local agency commission involved, the same also is added on CIF value of goods – say 2% on FOB – USD 20.00.

Who pays for unloading under CIF?

If CIF is the customs valuation basis, the costs of unloading the vessel, clearing customs, and delivery to the buyer’s premises in the country of destination—including inland insurance—must be deducted to arrive at the CIF value.

Which is better CIF or CNF?

In this case, the price also includes sea freight charges and insurance to deliver the goods to YOUR nearest port. But only to port – from that point onwards, you take the shipment into your hands. CNF – Cost & Freight (or Cost, no Insurance, Freight). Similar to CIF only this time insurance is not included.

What is FOB CNF CIF?

There are two major terms of shipment widely used round the globe. These are freight on board (FOB) and cost net freight (CNF). Other terms such as cost net insured (CIF) and cash against document/delivery (CAD) are also used.

What does CIF 10% mean?

Q: What does “CIF+10%” mean? A: CIF+10% stands for: C = Cost/invoice value (purchase cost if your client is the buyer, or selling price if they are the seller) I = Insurance premium. F = Freight and associated charges (e.g. customs clearance charges)

Who pays CIP freight?

seller
Carriage and Insurance Paid To (CIP) is when a seller pays freight and insurance to deliver goods to a seller-appointed party at an agreed-upon location.

What is the CIF value?

CIF (Cost, Insurance, Freight) A pricing term indicating that the cost of goods, insurance, and freight are included in the quoted price. Duty is calculated by adding all costs together. See below for example.* Invoice Value.