pls explain to me what is: FOB, CFR, CIF. in international trade pls help me?

Answer 1

When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. To make it as clear as possible, an international set of trade terms (INCOTERMS) has been adopted by most countries that defines exactly the responsibilities and risks of both the buyer and seller including while the merchandise is in transit.

FOB = Free Onboard Vessel, named ocean port of shipment. This term is used for ocean shipments only where it is important that the goods pass the ship's rail.

So, for example, it might be FOB Norfolk, VA, which means responsibility for the goods transfer to the buyer as soon as the goods are put onboard the ship in Norfolk, Virginia. At that point, the buyer must pay for transporting the goods on the ocean vessel, pay to clear the items through customs at the destination country, and pay to trasport the goods to the buyer's warehouse. The buyer should also be insuring the goods during this portion of the journey against loss or damage.

CFR = Cost and Freight, named ocean port of destination. This term is used for ocean shipments that are not containerized.

CIF = Cost, Insurance and Freight, named ocean port of destination. This term is used for ocean shipments that are not containerized.

Answer 2

In reference to economics, trade and finance, the three abbreviations you cite are most likely:

FOB= Free On Board. It has several definitions. See the article here: http://en.wikipedia.org/wiki/Free_On_Board

CFR= Code of Federal Regulations. See article: http://en.wikipedia.org/wiki/Code_of_Federal_Regulations

CIF= "Cost, Insurance & Freight" see: http://en.wikipedia.org/wiki/Cost%2C_Insurance_and_Freight