Differences in Risk Allocation Between FOB and CIF

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INCOTERMS · FOB · CIF · 贸易

Differences in the point of risk transfer, insurance liability, and cost bearing.

FOB: The seller is responsible for pre-shipment costs and export customs clearance; risk transfers to the buyer once the goods pass the ship's rail; the buyer is responsible for ocean shipping and insurance.

CIF: The seller is responsible for freight and insurance to the destination port, but risk still transfers at the time of loading (not upon arrival at the port).

Practical notes:
- Under CIF, it is sufficient for the seller to insure against the minimum cover; if the buyer requires higher protection, this should be agreed.
- Destination port unloading charges and import customs clearance are allocated differently depending on the terms (CIF does not include unloading).
- When settling by letter of credit, ensure that document requirements are consistent with the terms.

本文由 SteelWe 编辑与行业专家整理，内容仅供行业交流参考，不构成交易或投资建议。引用请注明来源。

Differences in Risk Allocation Between FOB and CIF

Differences in the point of risk transfer, insurance liability, and cost bearing.

FOB: The seller is responsible for pre-shipment costs and export customs clearance; risk transfers to the buyer once the goods pass the ship's rail; the buyer is responsible for ocean shipping and insurance.

CIF: The seller is responsible for freight and insurance to the destination port, but risk still transfers at the time of loading (not upon arrival at the port).

Practical notes:
- Under CIF, it is sufficient for the seller to insure against the minimum cover; if the buyer requires higher protection, this should be agreed.
- Destination port unloading charges and import customs clearance are allocated differently depending on the terms (CIF does not include unloading).
- When settling by letter of credit, ensure that document requirements are consistent with the terms.

本文由 SteelWe 编辑与行业专家整理，内容仅供行业交流参考，不构成交易或投资建议。引用请注明来源。