What do the INCOTERM acronyms FOB, FAS, CFR, and CIF mean?
What will be an ideal response?
The International Chamber of Commerce (ICC) sets standards for commercial contracts. This includes establishing the meaning of acronyms used internationally. The acronyms indicate who pays the costs of shipping, insurance, and import duties. For example, ICC Publication entitled INCOTERMS, groups these terms into four different categories. The E terms, as in EXW for "ex works," indicate the goods are available to the buyer at the seller's premises. The F terms, such as FAS for "free alongside ship" and FOB for "free on board," indicate that the price quoted by the seller includes delivery of the goods to a carrier appointed by the buyer. The C terms, including CFR for "cost and freight," and CIF for "cost, insurance, and freight," imply that the exporter's quoted price includes the cost of transportation to the named port of destination for CFR and that the cost of insurance is also included in the price, in addition to the transportation charges for CIF.
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