C.I.F. – Cost, Insurance and Freight (-named port of destination) It is most frequently used term in export transactions and includes FOB price plus cost of ocean freight and marine insurance, upto the port of destination. In C.I.F. quotation, care must be taken to state the name of port to which the goods are intended to be shipped. However, if the “CIF price is applicable all over the world, the quotation should be “CIF Main Port”. CIF does not, however, include any charges for unloading the goods or for import duties, if any, in the country of importation. It is the preferred type of quotation because the importer can know what exactly the goods will cost him at his port. Moreover, it means fewer responsibilities for him because it is the exporter who takes all risks for fluctuations in “rates of insurance and freight, unless otherwise specified in the export contract”. Thus, it is CFR plus marine insurance against the buyers’ risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. It can only be used for sea and inland waterway transport. When the ship’s rail serves no practical purposes such as in the case of roll-on/roll-off or container traffic, the CIP term is more appropriate to use. In France, C.I.F. is known as C.A.F. i.e. Cout, Assurance, Fret. CIF & c In this type of quotation, besides cost, insurance and freight, commission charged by a middleman, if any, is included in the price. It may also include the commission of the exporter, which he may charge the buyer (importer) while acting on his behalf. The small letter ‘c’ must, therefore, be explained clearly in the export quotation/contract as it may sometimes relate to the commission of the import agent, if any, through whom the export order has been received or export negotiations have taken place. On the other hand, it may be a commission of the exporter himself. CIF & C or FOB & C These are quoted where the exporter assumes the risk of exchange fluctuations that may occur between the date of contract acceptance and payment. CIF & c & i The word ‘c’ & ‘i’ in this quotation stands for commission and interest and, hence, it makes it clear to the buyer that bank’s interest and commission are payable by him. However, if the buyer pays the bill before its maturity, he is allowed a rebate. This type of quotation is used when export is effected to distant places in which case the settlement of the bill of exchange drawn on the importer takes some time. CIF ex It includes cost, insurance, freight and exchange. The expression ‘exchange’ is, however, ambiguous in this type of quotation. Some times, it refers to the banker’s commission or charge and sometimes to exchange fluctuations. When it refers to exchange fluctuations, it means that the purchase price is not affected by the subsequent rise or fall of the agreed currency of payment between the exporter and the importer.