The Difference from CFR and CIF price

- Jun 04, 2020-

1. Different price components

CIF price = purchase cost price + domestic fee + foreign shipping fee + foreign insurance fee + net profit

CFR price = purchase cost price + domestic cost + foreign freight + net profit

2. Different insurance

CIF: The seller is responsible for chartering, booking and pre-shipping; handling insurance and paying insurance.

CFR: The seller is responsible for charter booking, pre-shipment charges; the buyer is responsible for insurance and payment of insurance.

3. Different obligations

The CFR seller must provide the goods and commercial invoices or equivalent electronic messages that meet the requirements of the sales contract, as well as any other evidence that the contract may require to prove that the goods comply with the contract. The seller must obtain any export license or other official permission at his own risk and expense, and go through all customs formalities required for the export of goods when customs formalities are required.

If the buyer and the seller do not agree on a specific insurance type, the seller only needs to obtain the minimum insurance type. If the buyer requests to insure war insurance, the seller should insure the insurance if the insurance premium is borne by the buyer. If it can be done, it must be insured in the contract currency.