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CIF Cost, Insurance, and Freight: The Safety Net
Under CIF cost insurance and freight, the seller not only arranges and pays for transport (like CFR) but also provides insurance against the buyer’s risk of loss or damage to the goods during transit. Picture a tightrope walker with a safety net below. That’s the essence of CIF. Here, Incepted in 1936, CIF is the cautious sibling of CFR, adding an extra layer of security to the journey.
Die Verpflichtungen des Verkäufers:
Lieferung der Waren an Bord des Schiffes im Verschiffungshafen.
Pay for the cost of transport and insurance to the named port of destination.
Abfertigung der Waren zur Ausfuhr.
Die Verpflichtungen des Käufers:
Verzollung der Waren zur Einfuhr, Zahlung etwaiger Zölle.
Sie tragen alle Risiken des Verlusts oder der Beschädigung ab dem Verschiffungshafen.
CIF instance:
Der Verkäufer: An international motor producer’s factory in China
Der Käufer: An importer in Poland
Versand-Inkoterm: CIF for 1000 pieces of small-size precision motors
Die Kosten würden sich folgendermaßen zusammensetzen:
- Produktkosten: Agreed price for the coffee beans is $50,000.
- Lokale Logistik: Costs for delivering goods from the farm to the port in China (seller’s responsibility), let’s say $2,000.
- Ausfuhrzollabfertigung: Costs for the goods to be cleared for export by China customs (seller’s responsibility), let’s say $1,000.
- Frachtkosten: Cost of shipping goods across the ocean to the destination port in Poland (seller’s responsibility under CIF), let’s say $5,000.
- Insurance: The cost of insuring the goods during transit (seller’s responsibility under CIF), let’s say $500.
So, the total cost to the seller (CIF price) is $50,000 (Product Cost) + $2,000 (Local Logistics) + $1,000 (Export Customs Clearance) + $5,000 (Freight Charges) + $500 (Insurance) = $58,500.
Versand:
Under CIF, the seller has the obligation to arrange and pay for the carriage of the goods to the agreed port of destination, and also to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The risk transfers from the seller to the buyer once the goods are loaded on the ship at the port of origin.
Therefore, the total cost to the buyer is the CIF price ($58,500). The buyer will be responsible for import clearance and any applicable local taxes or import duties, as well as the cost of transporting the goods from the port of destination to their final location.
