Insurance Cost Adalah – Understanding the rules of Ingotherms and the ideal CIF implementation is very important for business or business actors who are active in international trade.
This should avoid unexpected or unnecessary expenses to maximize the benefits of business transactions.
Insurance Cost Adalah
(CIF) is a formal agreement in the context of trade, in which the seller is responsible for insurance, delivery process and transportation costs.
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From January 1, 2020, the last ICC published the latest rules of 2020, which changed the rules from the previous 2010 innings.
In this last rule, there are changes at the CIF insurance level, which require at least insurance.
In general, the CIF is often used in companies that have just started to expand the international trade, so there is still a lack of experience in its management.
Otherwise, it is often chosen if the seller already has extensive experience and experts in the field of international trade. In addition, the CIF is also the first solution if it includes large items.
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(CIF) occurs when dealing from the port (sea, ocean) transportation from the customer’s port.
The use of CIF is done when the buyer or client does not want to worry about different types of costs and insurance care that are considered quite complex and just accept.
Even so, this is an obstacle to this CIF method is an expensive price, as the customer cannot choose other options than the seller gives.
If the transaction can come to an agreement, the agreement will be reduced by the CIF agreement, which are mentioned risks.
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After that, the seller will perform his duties, from the Department of Transport Insurance, managing the transport process and maintaining all costs.
Then the products are packaged and loaded on shipping ships, loss and damage to the seller will pass from the seller to the buyer.
When the item has reached the destination port, the buyer will then keep the delivery of goods to the final destination. On the other hand, they also keep all the costs of cup and taxes.
Although both are an agreement in international trade, the main choice of transport method is performed, both have a big difference.
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While on FOB. The buyer will be fully responsible for both the transport process and the cost details are more flexible than the CIF.
Therefore, the difference between prices will be quite significant, as the CIF will be adjusted by the seller until the flexible FOB can be resolved by buyers.
(CIF) A contract by the seller in the transportation process, from the insurance choice, delivery method and expenditure component.
One of the shortcomings of this Agreement is the cost component, which is generally large enough. However, it will be covered by a seller with a large experience to prevent damage or loss of goods to minimize or eliminate.
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Both you, as buyers and sales can also manage financial planning, already costs due to the component.
Moreover, there is an automation system that you can use from registering transactions, the availability of goods, the compiler of the financial statements.
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With a job that requires a long time can end in real time. Monthly accounting works can be completed in just a few days: cost safety and goods. In the age of globalization, international trade has become the veins of the world economy. For businessmen who want to spread their wings in the global market, understand the complications of international trade, absolutely. The important aspect of international trade is potential, which is a number of rules that regulate the responsibilities between sellers and buyers of international transactions.
Cost, insurance and product (CIF) provokes (CIF) are often used in international trade. After a simple abbreviation, there is a complex understanding and responsibility that is divided between sellers and buyers. For beginners, realizing the CIF, as a whole, can feel confusing.
Cost, insurance and goods (CIF) or often, are the CIF in order to regulate responsibility between sellers and buyers between international trade transactions.
CIF is often badly interpreted as a cost of transporting goods to buyer from the seller. This assumption is incorrect. CIF is a more complex share of responsibility, which includes three main elements.
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Understanding CIF as a whole, it is very important for business people involved in export import operations. Understanding the rights and responsibilities of each party, international trade transactions can operate smoothly and avoid arguments.
Imagine a company in Indonesia who wants to import cars from China. China sellers offer $ 10,000 for the car.
Cost, insurance and products (CIF), which are often reduced as a CIF, is a vain scheme that regulates the responsibilities between sellers and buyers of international trade transactions. After a simple abbreviation, there is a complex and structured working mechanism.
In the CIF scheme, if there is a dispute between the seller and the buyer, the International Chamber of Commerce (ICC) provides the rules for resolving disputes to help solve the dispute fairly and effectively.
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ICC is regularly updated by ICC, reflecting changes in international trade practice. Incootherms latest version of Incoustms 2020 applied on January 1 2020.
If you are not sure about the details of the CIF scheme, you have other issues related to international trade, you can consult with experts or specialists in this area.
Cost, insurance and product (CIF) are an important scheme of futility. Understanding CIF, including details, details, cases examples and rarely discussed information is the key to success in international trade.
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