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Posts Tagged ‘Ireland Import’

What is CIF?

August 29th, 2011 No comments

CIF means Cost, Insurance and Freight. This Incoterm (international commercial term) is also commonly referred to as DDP, which means Delivered Duty Paid to the destination port.

The supplier basically takes responsibility for the product from manufacturing, freight, customs and duty for the buyer. It normally works out a little more expensive for the buyer than if they were doing it themselves or FOB but it is an option many prefer as they don’t have to worry about the costs and hassle of the whole process.

If the buyer prefers this delivery method they should be sure to state it at the very beginning to the supplier. What normally happens is that the supplier will nominate their own shipping agent and deal with the process themselves.

How to calculate this into your overall costs involving FOB?

August 29th, 2011 No comments

FOB as explained before covers the cost of your product either until your shipment is loaded or until it has arrived at your destination port.

If it is FOB destination port, then the purchaser has to pay for:

  1. Shipping Fee.
  2. Customs fee at the destination port.
  3. Duty on the product if it requires any (Your will have to research this or shipping agent should be able to classify the product.
  4. Once released, delivery to the final destination as listed on the shipping documents.

The purchaser can do this whole procedure themselves but it is highly advisable and both economically and time efficient to enact a shipping agent or freight forwarder to take care of this for them.

If it is FOB port of loading, then the purchaser has to pay for points 2-4 as above.

What is FOB?

August 29th, 2011 No comments

As a general term, FOB means ‘Freight On Board’ or ‘Free On Board’ as it is more generally used in international shipping. This means that the seller will pay for the goods to be loaded onto the vehicle of transport.

The term FOB can be used to clarify which part of the shipment is being paid for by the supplier and which part is to be paid for by the purchaser.

For instance FOB, (port of loading) indicates that the seller will pay for the goods to be loaded onto a vehicle of transport (usually a container ship) at the initial port only. Shipping, Duty, Customs clearance and delivery to final location will be paid by the purchaser. Usually this is a shipping agent as nominated by the purchaser.

FOB, destination port indicates that the shipping fee will be paid by the seller/supplier. Duty, customs clearance and delivery to final location will be paid by the purchaser.

For a more in depth understanding of the term FOB, contact your shipping agent or get in touch with us with an explanation of the shipping situation.