FOB (Free on Board): The transaction is carried out on the basis of offshore plus, the buyer is responsible for sending a ship to pick up the goods, the seller loads the goods on the ship designated by the buyer at the port of shipment and within the specified time limit executive list specified in the contract and informs the buyer in time. Risk transfers from the seller to the buyer when the shipment is loaded onto the designated vessel at the port of executive list shipment. CFR (Cost and Freight): The ship is delivered at the port of shipment, and the seller needs to pay the cost of specifying the destination port of the goods. Cargo risk transfers on FOB at the port of executive list shipment. [CFR (CIF) calculation formula is CIF (FOB) = CFR (CIF) price/(1-(1+ Insurance Plus) × Insurance rate)]. CIF (Cost Insurance Freight).
The components of the price include the usual freight from the port of shipment to the agreed destination port and the agreed insurance premium. Therefore, in addition to the same obligations as CFR, the seller must also handle freight insurance executive list for the buyer, Pay for insurance. According to general international trade practices, the insurance amount insured by the seller should be increased by 10% according to the CIF price. If the buyer and seller executive list have not agreed on specific insurance types, the seller only needs to obtain the minimum insurance type. If the buyer requires war insurance , under the premise that the insurance premium is borne by the buyer, the seller will add insurance. CPT (Carriage Paid To).
The seller delivers the goods to the designated carrier (cargo to the carrier), and the seller must also pay the freight for transporting the goods to the executive list destination. That is, the seller bears all risks and other costs after delivery. CIP (Carriage Insurance Paid To): The seller delivers the goods to the carrier designated by the buyer, during which the seller executive list must pay the freight for transporting the goods to the destination and apply for insurance for the risk of loss or damage to the seller's goods in transit. The buyer assumes all risks and additional costs after delivery by the seller.