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FOB Means Free on Board ( Cargo only up to boarding point, Freight and insurance must be arranged by customer who placed the order)
CIF Means Cost , Insurance and Freight (It includes all the expenses incurred to reach until customer port )
FOB PRICE STANDS FOR FREIGHT ON BOARD (IT MEANS PRICE OF CARGO IS NOT INCLUDING FREIGHT CHARGES. IT WILL BE PAYABLE AT DESTINATION PORT. CIF STANDS FOR COST, INSURANCE & FREIGHT PREPAID (IT MEANS PRICE OF CARGO IS INCLUDING COST, INSURANCE & FREIGHT)
FOB price means Free on Board (upto country of origin Port) CIF means Cost Insurance and Freight included that means the price is inclusive of Cost Insurance and Freight up to destination Port
The FOB and CIF are some terms of Incoterms which updated recently to Incoterms.
FOB is free on Board that means the supplier will load the goods to the vessel at his account but this will not include the charges of the ocean freight.
CIF mean that the seller responsible to deliver and pay for the freight to the shipment till the destination port with insurance policy. Buyer shall only arrange with his agent to declare the shipment. once the documents issued the buyer has to follow immediately with the custom agent to save time and not to pay extra charges for storage and handling at the destination port
FOB Freight on Board - Charges are applicable till the shipping destination either sea or Air mode
CIF - Cost Insurance Freight - Till delivery Destination without duty and delivery documentation charges
FOB - Free on Board (named port of shipment) (Buyer have to arrange the material from nominated port)
CIF - Cost, Insurance & Freight (Buyer have to select the destination port. after that buyer have to arrange custom clearance and transportation of material upto there warehouse.)
FOB:" Free on board": An Inco term and this includes the cost of goods including Tdelivery and loading the goods at the designated carrier at a particular port Sea port, Airport or landport). Normally, this terminology is used for sea shipping.
CIF: Cost insurance and Freight": This includes cost of goods, cost of transportation form supplier's premises to the buyer's premises or at the designated port at the buyer's country and all through delivery insurance cost.
Free on board Price that is you Check Out your Goods in customs
FOB is Free on Board and CIF is cost, insurence and frieght both are international shipping agreements used in the transportation of goods between a buyer and a seller.
