A : → FOB - Free on Board (…named port of shipment) (Maritime and inland waterway transport only) The seller delivers and clears the goods for export, when they pass the ship's rail at the named port of shipment. CIF - Cost Insurance and Freight (…named port of destination) (Maritime and inland waterway transport only) The obligations are the same as under CFR (Cost and Freight) with the addition that the seller must procure insurance against the buyer's risk of loss of, or damage to the goods during carriage.
Q : → We are interested in export of premium, gift and stationery sourced from China to Australia. What is the usual means of transportation? Do we need to have a certificate of origin? What is the usual trade term (FOB or CIF)?
A : → Unless the products are of high value and low bulk, the usual means of transportation from China to Australia is by sea. The certificate of origin is only required upon requests by the importer. If the certificate of origin is required to accompany with the shipment, the issuing authority in China is the China Council for the Promotion International Trade. FOB or CIF are for price quotations of your products for exports. Just quote the way as requested by your customers.
