CIF Will be Preventing Crises in the Delivery Process

As we all know in the world of international seafood trade, the term Incoterms is a familiar term. Incoterms (International Commercial Terms) are terms created to equate understanding between suppliers and buyers in international trade. One group of these Incoterms is Cost Insurance and Freight or CIF. CIF has been widely adopted by many countries because it has its own shipping advantages. What are these shipping advantages? Let’s dive deeper!

Why CIF?

As a buyer, of course, you will feel happy if you are given the best service from your supplier, especially if you get convenience in shipping seafood products by getting shipping advantages. Therefore, in shipping seafood products, using the CIF method is one way you are served well and comfortably.

On the other hand, not only the buyers who will get the shipping advantages but also CIF makes it easier for the supplier because the CIF system has several advantages for suppliers as well. Some of them are insurance systems and transfer of risk.

There are four shipping advantages of the CIF method both for the buyers and suppliers. What are those things?

1. Practical and Easier Shipping of Seafood Products

CIF can provide shipping advantages for the buyers because, through this method, buyers do not need to think more about the cost of transportation as well as the insurance process and procedures. The suppliers have taken care of all these things.

You as a buyer do not have to bear the costs of shipping, insurance, unloading goods, and others related to the seafood products until it arrives in your country.

2. Shipping cost and Products Guarantee

In the CIF method, all operational costs are borne by the supplier. Yes, the supplier takes care of everything from packaging to the products arriving at the destined port.

Therefore, suppliers are required to clearly state the price of transportation in the CIF method.

You don’t have to worry about shipping costs and product guarantee that is included in the selling price of the seafood products, because all costs are borne by your chosen suppliers. Such nice shipping advantages, right? 

3. Improves the Validity and Accuracy of Freight and Insurance Data from Export Activities

This one thing is the purpose of the plan to implement the use of Terms of Delivery (TOD) in the form of Cost, Insurance, and Freight (CIF) for recording exports in the Export Declaration documents.

The provisions on the inclusion of export transaction values using CIF terms in the Export Declaration are in principle intended only for the purpose of recording the value of freight and insurance. The binding export transaction value is the export transaction value agreed between the suppliers and the buyers.

4. Easier bureaucracy and process lines in export-import activities

The CIF method facilitates many process lines and bureaucracy in terms of managing incoming products, starting from costs and insurance documents, shipping, and loading and unloading. Pricing can also be more clear and transparent when using the CIF system. In this way, trade relations between buyers and suppliers have the potential to be more durable. 

Who wouldn’t love these shipping advantages above? As the CIF method is the best service you will get when purchasing seafood because it has many shipping advantages, then the right supplier that provides this service is C-Fishery! C-Fishery is an Indonesia-based seafood supplier with years of experience exporting seafood products that follow international shipping rules.

Do not hesitate to contact our representative if you have further questions about the CIF method that has shipping advantages, which we use. Peek our catalog here! (Yustika)