December
30
2024
기사의 목차
I. Basic Concepts Of FOB And CIF
| FOB | CIF | |
|---|---|---|
| Concept | – Free On Board: is the name of a delivery term in Incoterms | – CIF(Cost / Insurance / Freight): is the name of a delivery term in Incoterms |
| Main Content | – Stipulates that the seller will complete his responsibility immediately after the goods have been loaded on board the ship at the port of loading . If the goods have not been loaded on board, the seller is still responsible for the shipment. The seller’s responsibility will be completely transferred to the buyer after the goods have been loaded on board. | – Stipulates that the seller will have to fulfill his responsibility when the shipment has been loaded on board the ship at the port of loading, but must pay all transportation costs during the process of transporting the goods to the destination port. |
| Price | = Price of finished goods + container lifting fee + domestic container pulling fee + customs declaration fee + certificate of origin fee (if required) + maintenance fee + quarantine fumigation fee | = FOB price + International insurance cost of goods ( Insurance ) + Freight |
II. Comparison Of FOB And CIF
| Note Content | FOB | CIF | |
|---|---|---|---|
| Alike | – The seller will do customs clearance. – Buyer does import procedures |
– FOB and CIF are both terms in Incoterms ( Terms in international trade ). – The loading port is the point of risk transfer between the buyer and seller . |
|
| Distinctive | Declaration | – Declared with the same name of the loading port | – Declared with the same port of destination (POD) |
| Terms of delivery | – Regulations on delivery on board | – Regulations on goods, freight and insurance | |
| Chartering responsibilities | – The seller has no obligation to charter the vessel. – Buyer must charter the ship |
– The seller will find a shipping unit. | |
| Point of transfer of risk and cost | – Point of transfer of risk and cost: At the port of loading | – Risk transfer point: At loading port – Cost transfer point: At the port of discharge |
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III. Responsibilities Of The Parties In FOB And CIF contracts
a) FOB Contract Between Buyer And Seller
| Terms of Liability | Buyer | Seller |
|---|---|---|
| 1. Payment obligations | – Responsible for paying all costs of goods to the seller as committed and clearly stated in the contract signed by both parties. | – Responsible for delivering goods onto the ship at the port, providing full commercial invoices or equivalent electronic documents, and providing sea waybills as proof of delivery. |
| 2. Licenses and procedures | – Responsible for preparing export licenses; and completing customs procedures in accordance with current laws and regulations to ensure that the shipment is allowed to be imported into their country and territory. | – Responsible for proactively completing export procedures and providing export licenses so that the shipment is eligible for export. |
| 3. Contract of carriage and insurance | – Responsible for paying the cost of transporting the goods from the designated port of departure to the final port, which can be an inland warehouse or a port of discharge, depending on the agreement of both parties. The buyer is not required to purchase an insurance contract if they do not want to . | – The seller bears the costs and risks in the contract of transporting the goods from the inland warehouse to the port . These costs and risks will be terminated and transferred to the buyer after the goods are loaded on board the ship. |
| 4. Delivery | – They will take possession of the goods as soon as the shipment has been loaded at the port of destination. | – The goods will be transported by the seller from the designated port of departure. At the same time, the seller is responsible for paying the costs of loading the goods onto the ship. |
| 5. Risk transfer | – The risks are transferred from the seller after the goods have passed over the ship’s rail. This risk includes loss during transit. | – Once the goods are loaded onto the ship, all costs are transferred from seller to buyer. |
| 6. Fees | – Freight charges must be paid from the time the goods are placed on board . | – Pay all costs until the goods are placed on board . Including customs clearance costs, taxes,… |
| 7. Buyer Information | – The buyer needs to notify that the goods have been loaded on board, and needs to provide information about the ship name and designated port. | – The seller is responsible for notifying that the goods have been completely delivered over the ship’s rail. |
| 8. Proof of delivery | – Provide evidence of goods transportation to the seller, the most common is the bill of lading | – Responsible for providing the buyer with transport documents for delivery from warehouse to port as evidence of delivery. |
| 9. Inspection – Packaging – Marking of goods | – The buyer shall bear all costs incurred if the shipment is inspected by the customs of the exporting country. | – The seller shall bear all costs for inspection and quality control of the shipment. The buyer shall be informed in case of special packaging. |
| 10. Other obligations and responsibilities | – Pay all costs incurred to obtain relevant documents . | – Provide necessary information and documents to ensure transportation and delivery to destination . |
b) CIF Contract Between Buyer And Seller
| Terms of Liability | Buyer | Seller |
|---|---|---|
| 1. Supply of goods | – Responsible for paying for the purchase as specified in the sales contract signed by both parties. | – The seller is responsible for delivering the goods and providing important documents such as commercial invoices, sea bills of lading, etc. |
| 2. Licenses and procedures | – Must clear customs for the shipment and apply for an import license for that shipment. | – Provide full export licenses and local authorization documents for export shipments. |
| 3. Contract of carriage and insurance | – There is no need to enter into main transport contracts and or insurance contracts for that shipment. | – Responsible for signing an insurance contract for the shipment and paying for the shipping costs of the shipment to the designated destination port. |
| 4. Delivery and receipt | – Responsible for receiving goods from the seller at the designated port. | – Responsible for delivering goods at the port designated from the beginning. |
| 5. Risk transfer | – The buyer shall assume the risk of the goods once they have been delivered on board the ship. | – The risk will be transferred from the seller to the buyer after the shipment is passed over the ship’s rail. |
| 6. Fees | – The buyer will be responsible for paying any fees incurred after the shipment is delivered on board . In addition, the buyer will have to pay import tax and carry out customs procedures for that imported shipment. | – The seller will be responsible for paying all costs to load the goods onto the ship, transport the goods to the port of discharge, declare customs, insure and pay export taxes . |
| 7. Proof of delivery | – The Buyer shall accept the documents delivered by the Seller in the most suitable form. | – The seller shall be responsible for delivering the original documents immediately after the shipment is delivered on board. |
| 8. Check the goods | – Responsible for paying the costs of quarantine work in the exporting country,… | – Must pay costs for goods inspection, goods quality management, packaging… |
