CIF : Coût, assurance et fret

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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.

Obligations du vendeur :

Deliver the goods on board the vessel at the port of shipment.

Pay for the cost of transport and insurance to the named port of destination.

Dédouaner les marchandises pour l'exportation.

Obligations de l'acheteur :

Dédouaner les marchandises à l'importation, en acquittant les droits de douane éventuels.

Bear all risks of loss or damage from the port of shipment.

CIF Cost, Insurance and Freight Costs and Risks for buyer and seller

CIF instance:

Le vendeur : An international motor producer’s factory in China

L'acheteur : An importer in Poland

Incoterm d'expédition : CIF for 1000 pieces of small-size precision motors

E-bike motors produced by Nidec
E-bike motors produced by Nidec

Voici comment les coûts se répartiraient :

  1. Coût du produit : Agreed price for the coffee beans is $50,000.
  2. Logistique locale : Costs for delivering goods from the farm to the port in China (seller’s responsibility), let’s say $2,000.
  3. Dédouanement à l'exportation : Costs for the goods to be cleared for export by China customs (seller’s responsibility), let’s say $1,000.
  4. Frais de transport : Cost of shipping goods across the ocean to the destination port in Poland (seller’s responsibility under CIF), let’s say $5,000.
  5. 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.

Expédition :

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.


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