CSEET · Business Communication · Common Business Terminologies
A Pune exporter quotes a price on a 'CIF Dubai' basis. Which of the following is included in this price?
A CIF Dubai price includes the cost of the goods, marine insurance and freight up to the Dubai port. Import duties at destination are not included and remain with the buyer. Omitting insurance would convert the term into CFR.
- ACost of goods, marine insurance and freight to DubaiCorrect
- BCost of goods only, with the buyer arranging freight and insurance
- CCost of goods and import duty payable in Dubai
- DCost of goods and freight, but with insurance left to the buyer
Explanation
CIF stands for Cost, Insurance and Freight. The seller pays the cost of goods, arranges marine insurance and pays freight to the named destination port. Import duty is the buyer's burden, and leaving insurance out would make the term CFR.
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