Think of a line starting at a factory and ending at your garage (or
warehouse). There are four points...the factory...the exporting country's
docks...the importing country's docks...and your warehouse.
CIF and FOB are just points on the continuum where you take responsibility
for the goods, and all costs included to get them to that point...the closer
to you, the more costs included...
FOB = Free On Board, meaning free of any encumbrances, on board the vessel,
in the exporters harbor...price maybe $1.00 each... CIF = cost of goods to
importers docks, including freight and insurance to get it to the importer's
dock...(there is also C&F, wherein insurance is not included. You are
expected to buy it otherwise.
John
Tuesday, March 28, 2000
Re: Shipping Terms
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