This type of learning is more difficult for those who are prone to procrastination. Disadvantages of CIF terms when shipping goods. For more inexperienced buyers, it may be best to use CIF until fully accustomed to the importing process as it can be quite difficult to understand. Hi Bruno, Thanks for reaching out! by: peter opoku bonna, ll.b, ll.m ‘free on board’ (fob) and ‘cost, insurance and freight’ (cif) are all icc incoterms1. Advantages and Disadvantages for the Buyer When trading under a CIF agreement, there are significant advantages for the buyer, making the purchasing process easier. Each agreement has particular advantages and drawbacks for both parties. While sellers often prefer FOB and buyers prefer CIF, some trade agreements find … Reply. ‘international sale of goods: different advantages ‘cif’ and ‘fob’ contracts offer sellers and buyers of goods carried by sea’. As Lord Wright observed, C.I.F is a type of contract which is more widely and frequently used that any other contract used where sea carriage is … However, the two most common terms would be CIF and FOB. The (CIF) contract governs the sale and movement of goods from the point of production to the agreed destination. Advantages & Disadvantages for Specialist Contractors in an Irish Context Professor Rudi Klein, Barrister CEO, SEC Group President NEC Users’ Group (one time member of JCT Drafting Sub-Committee) 1. As mentioned above you have many options when shipping goods from China. : SELF-DISCIPLINE – it’s essential that you have the motivation necessary to sit and do the course. 6. The latter is the preferred choice of many experienced importers due to the following disadvantages CIF terms brings to the buyer/importer of goods They are: Cost, Insurance and Freight (CIF) and Free on Board (FOB). Advantages and disadvantages of a C.I.F and F.O.B contract to seller and buyer C.I.F is one of the most popular of trade terms used in international sales contracts. The buyer will have nothing in his hands except documents, which makes his condition more insecure as, he still has to deal with the insurer and the carrier and he may not be able to recover from them. There are many advantages of using ICF blocks to build your house: Significant energy savings: In a study by the Portland Cement Association, ICF homes saved up to 50% on heating and cooling costs over wood-framed homes. Cost, Insurance and Freight (CIF) Bridge (2010) notes that, the contracts that govern sale of goods impose a variety of obligations to both the buyer and the seller. We will look at what it is, where it is used, its advantages and disadvantages. ADVANTAGES DISADVANTAGES; ACCESSIBLE – virtual learning is accessible to anyone who has a computer, tablet or smartphone. However, the disadvantages often outweigh the benefits for more experienced buyers. Shapiro says: August 24, 2016 at 1:34 pm . The Incoterms® rules developed by the International Chamber of Commerce is the industry standard for the interpretation and usage of trading terms used in a contract of sale in domestic and international trade.. And the advantages and disadvantages of making this transition? Advantages of ICF Homes. So CIF contract is not governed by Sale of Goods Act 1979 which is the advantages of CIF contract. Both options come with their advantages and disadvantages and the best option depends on your specific shipping situation. In this article, we will discuss the CIF Incoterm which is one of the 11 Incoterms® 2010 rules. Disadvantages of CIF contract: 1. The main difference between CFR and CIF is the supplier pays for insurance as well as the freight charges when a container is shipped CIF. 2. 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