designing life

Some terms in exporting: CIF and CNF

I am just helping my friend that want to import tissues fro China or Indonesia. So, I contacted several suppliers and got some replied. Most the price are indicated with CIF or CNF. What on earth are those? Do not laugh at me my friends, I just do not know the exporting terms. Finally I spend few minutes to find out what are those.

CIF = Cost, Insurance and Freight. When the seller quotes the price with CIF, it means that the price includes insurance and transportation/freight costs. Thus, the seller does not need to worry anymore about the the product loss/damage and transportation. But in tissue case, why need insurance? that is why some supplier recommends…

CNF = Cost and Freight. In this type of term, the product price includes only freight cost. No insurance is paid. In the end, the CNF price is lower than CIF cost.

Well, finally I knew what does it mean. So depending on the product that you want to export or import, you can weight the advantages and disadvantages for each terms.

Other than these 2 terms, there are still many terms like CPT, CIP, DES, DEQ, and many more.  At least I do not need to know them now

This entry was posted on Wednesday, July 9th, 2008 at 8:49 pm and is filed under featured, sharing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.