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Simple English definitions for legal terms
CIF
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A quick definition of CIF:
Term: CIF
Definition: CIF stands for Cost, Insurance and Freight. It means that when you buy something from another country, the price you pay includes the cost of the item, the insurance to protect it during shipping, and the cost of getting it to the port where it will be delivered to you. It's a way of making sure you know exactly how much you'll have to pay for something, even if it's coming from far away.
A more thorough explanation:
Definition: CIF stands for Cost, Insurance and Freight. It is an agreement between the buyer and seller in which the seller's quoted price includes insurance and all other costs up to a designated port of destination. This term is commonly used in the context of maritime transport.
A company in the United States wants to purchase goods from a supplier in China. The supplier quotes a price of $10,000 CIF Los Angeles. This means that the price includes the cost of the goods, insurance, and freight charges to transport the goods from China to the port of Los Angeles. The buyer is responsible for any additional costs, such as customs fees and taxes, once the goods arrive in Los Angeles.
This example illustrates how CIF is used to simplify the buying process for international trade. By including insurance and freight charges in the quoted price, the buyer knows exactly how much they will need to pay to receive the goods at the designated port of destination. This can help to avoid any unexpected costs or delays in the shipping process.