Similarities and differences of trade terms FOB, CFR and CIF (listed in tabular form)

Based on the general rules of 2000, this paper analyzes:

I. * * * Similarities:

1 is the most commonly used trade term;

2. It can only be applied to maritime or inland river shipping;

3. The sales contracts signed with the above three trade terms are all maritime contracts, and the risk division is bounded by the ship's side. The seller's obligation to complete delivery in the country of shipment or export is a sign of delivery of goods.

Second, differences.

1, the price composition is different: FOB = production/procurement cost+profit+domestic expenses, CFR = FOB+foreign freight, CIF =CFR+insurance premium;

2. According to Incoterms 2000, FOB belongs to Group F (unpaid main freight) and CFR and CIF belong to Group C (paid main freight). That is, FOB is paid by the buyer and CFR and CIF are paid by the seller.

3. The risk division point and cost division point in Group C are separate and different from FOB.