In a message dated 3/28/00 11:29:23 AM, luluoui@yahoo.com writes:
<< I'm really surprised at how inexpensive
it is. You mentioned it in your class, but I'm still
amazed. I keep thinking there are hidden costs
somewhere! I'm going to negotiate a contract in a
week with the co. I'm subcontracting. This is
exciting and interesting.
Do you need any kind of special license to import? >>
no special license...but be very careful...I suspect they HAVE NOT told you
all of the ocean freight charges...copy the bill of lading from the text and
ask them what all the charges are, and which of the similar charges you will
see..I bet you'll see a 40% increase..which will still be cheap... let me
know..
John
Tuesday, March 28, 2000
Re: Shipping Terms
Re: Shipping Terms
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
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