what is the difference between CIF and FOB+I&F? Is the term FOB + I&F a accepted international shipping term?

Answer 1

I have never heard of FOB + I&F and I don't think it is an accepted international shipping term. It is confusing because FOB is used to indicate that title and risk of loss transfer once the goods are loaded on board the ship at Seller's port. Basically Seller's obligations end at that point. If you have FOB plus a continuing obligation to insure the goods and pay the freight than it sounds the same as CIF. So presumably risk of loss is shifted to Seller until the goods reach Buyer's named CIF port. BUT it is a confusing way state it. Why not just say CIF? That being said, individual parties can do whatever they want. The meaning of a specific set of terms can be fixed by contract and courts will go with that.

There is a standard set of terms that is put out by the International Chamber of Commerce (ICC) in Paris. They are called Incoterms They are defined very carefully and were designed to facilitate trade by avoiding confusion. If you want to use them you have to indicate that in your contract by giving the term and then citing the version of Incoterms that you are using. For example if you wanted to use the Incoterm CIF you would say:
CIF (Incoterms 2000). I think that you can do it in other ways too if the meaning is clear but that is how I was taught to cite it. I really recommend that you buy a set of the ICC definitions and also buy their wall chart. The wall chart traces out the obligations under each term. It is really useful. I have put a link to the ICC below.

I should also mention that many states have their own commercial terms that are defined in the respective enactments of the Uniform Commerical Code (UCC). These can be different than the Incoterms. However, it goes to show that the real importance is to state in the contract what you mean. The ICC has gone to a lot of work to assemble a group of experts who have created definitions that are widely accepted. So basically they take the thought out of worrying about international shipping terms for the individual drafter. Just make sure to cite to them and don't deviate and create your own terms unless there is a real good reason and your prepared to fight out the meaning in court for the next century if a problem does arise. Also, don't rely on Googling the definition of individual terms. It is just not reliable. The ICC definitions are the real deal. As with any thing of this nature, you have to go straight to the source. Hope that helps.

Answer 2

CIF is the abbreviation for Cost, Insurance & Freight, FOB stands for Free on Board. To my knowledge, there is no term like I & F. These are terms used in international trade. When a buyer wants seller to ship the goods and bill not only for cost of goods but also arrange for insurance and freight, then buyer is said to purchase the goods on CIF terms. On the other hand if buyer would like seller to arrange only for goods to be loaded on the ship, then deal is said to be on FOB terms. The difference between two is that in former, seller decides which ship to use and has to arrange insurance also whereas in latter, buyer decides to choose the ship and insurer. There can be a term like C & F, where seller arranges for ship but buyer arranges for insurance. Since freight constitutes significant amount, choice of shipping company (its dependeability) is an important factor. Hence these terms.

Answer 3

CIF = Cost , Insurance & Freight
FOB = Freight on Board
C&F = Cost & Freight
Ex-works

** in FOB customer bears the freight charges from supplier's port to port of delivery
** in exworks, customer bear all charges from supplier's factory to port of delivery
** in C&F & CIF...supplier bears the freight & insurance to port of delivery