Uncategorized CFR VS CIF By Mr Old Man Posted on March 7, 2010 2 min read 6 0 6,147 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUERY FROM DONAPATRICE CIF/CFR WHAT IS THE DIFFERENCE BETWEEN cif/cfr? ————————— MR. OLD MAN’S COMMENT Hi Donapatrice It's a simple question. The below quoted from Incoterms 2000 can help answer your question: "CFR: COST and FREIGHT means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and the freight necessary to bring goods to the named port of destination. But the risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery are transferred from the seller to the buyer. CIF: COST, INSURANCE and FREIGHT means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and the freight necessary to bring goods to the named port of destination. But the risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage." So now you may see that the main difference between CFR and CIF is INSURANCE for which the seller has to contract and pay the premium. Best regards, Nguyen Huu Duc …
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CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?