A CIF contract of sale includes the cost of the goods, insurance, and freight to the destination in the contract price. The seller’s obligation is fulfilled once the merchandise is delivered to the shipper, and relevant documents including the bill of lading, invoice, insurance policy, and payment receipt for freight are forwarded to the buyer.
Cost and Freight (C&F) denotes a shipping agreement wherein the seller is responsible for covering the cost and freight to transport goods to a specified destination. However, the buyer assumes the responsibility for insurance once the goods are loaded onto the shipping vessel.
Cost, Insurance, and Freight (CIF) is a trade term used in international shipping to indicate that the seller covers the cost, insurance, and freight charges up to the destination port.
Free Alongside Ship (FAS) is an international trade term where the seller is responsible for delivering the goods alongside the vessel at the named port of shipment. The buyer assumes responsibility for all risks and costs from that point forward.
Free In and Out (FIO) denotes a selling price that includes all costs associated with loading goods into a container, road vehicle, ship, etc., and unloading them out of the transport.
Free on Board (FOB) is a term used in international commerce to distinguish the point at which the seller relinquishes all ownership, responsibility, and risk for the shipped goods.
International Commercial Terms, or Incoterms, first published in 1936 by the International Chamber of Commerce to promote standardized terminology for international trade.
