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What is FOB, TT, CIF, LC?

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Question added by Abdul Rahim Said Rahim , Senior Executive - Business Development , Al Ruwais Plastic Products Trading LLC
Date Posted: 2013/06/22
Deleted user
by Deleted user

FOB....Free on Board TT ....Telegraphic Transfer CIF......Cost, Insurance and Freight LC.......Letter of Credit

Waheed Hussain
by Waheed Hussain , Office Assistant , POF

FOB: free on board, assumption of responsibility by shipper for all costs until goods are placed on carrier.
TT: A colony or territory placed under the administration of one or more countries by commission of the United Nations.
Also called trusteeship.
CIF: Cost, Insurance and Freight; A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.
LC: Letter of credit, a document issued to provide a payment undertaking.

Arash Lajevardi
by Arash Lajevardi , National Sales And Marketing Manager , Bastan group

FOB : Free on board TT : Trusteeship.
CIF : Cost - Insurance - Freight LC : Letter of credit .
Please visit Below LINK http://www.undp.org/content/dam/undp/documents/procurement/documents/UNDP-Shipping-Guide.pdf

ABDUL MAJEED KUNNAM PADATH
by ABDUL MAJEED KUNNAM PADATH , Chief Accountant , Arab building materials

FOB- Incase of Export/Import Frieght charges will be paid in On Board Port(The end port)

TT : Its the transfer of fund,from bnak to bank(Eg.Customet bank Transfer money to Supplier bank)in any currency,locally or globally.

CIF : Its a type of Import method,in this case Frieght will be paid in Loading Port,but Insurance should be arranged in Boarding Country.Means goods are not insured by Supplier.

L/C- Letter of credit,on the basis of sales contract customer bank give Letter of credit guarantee to supplier bank,that the money will be paid on time on or before the materilas delivered.

 

Yogendra Bhalerao
by Yogendra Bhalerao , Projects Sr. Executive in Thermax, India, Pune , Thermax Ltd.

These are export shipment terminologies.
Normally called as INCOTERMS.
eg.
FOB is Free on board.
This means if a supplier is having an FOB contract with the buyer he is responsible till the cargo gets loaded on the vessel.

SALIK RAFIQUE
by SALIK RAFIQUE , GM FINANCE , SWISS PRO MANUFACTURING CO.

FOB...
Free on board TT....
Telegraphic Transfer CIF..
Cost Insurance Freight LC....
Letter Of Credit

saji sajisundersingh
by saji sajisundersingh , Senior Accountant-Payable & GL , Dubai Health

FOB....Free on Board TT ....Telegraphic Transfer CIF......Cost, Insurance and Freight LC.......Letter of Credit

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