The third chapter is the comparison of export quotation methods (1) Comparison between FOB and CIF 1. The nature of the port referred to in the two trade terms is different: the port after FOB refers to the seller's port, while the port after CIF refers to the buyer's port. 2. Different cost components: FOB refers to cost price, also known as FOB. CIF is on the basis of FOB price plus Shanghai freight and insurance. 3. The payment and handling of insurance premium are different: FOB insurance is handled by the buyer, and the seller notifies the buyer; CIF insurance is covered by The Seller shall handle and pay the insurance premium. The Seller shall handle the insurance according to the contract terms and insurance terms and submit the insurance policy to the buyer. 4. Different from chartering and booking: the FOB price is arranged by the shipping company designated by the buyer. The buyer's timely chartering and booking space will affect the seller's timely delivery and bank presentation of documents. The CIF price shall be determined by the shipping company selected by the seller. 5. The notice of shipment shall inform the buyer at different times: FOB stipulates that the notice of shipment shall notify the buyer before shipment, including the contents and details of shipment, so that the buyer has enough time to handle cargo insurance. CIF is the seller's notice of shipment to the buyer within a few days after shipment. 6. The risk of force majeure is different: in CIF terms, the seller applies for insurance at the port of departure. If the customer refuses to pay the refund, the seller can claim against the local insurance company with the insurance. In the case of FOB, the buyer handles the insurance, and the policy is in the buyer's hand. It is difficult for the seller to claim from the insurance company. In terms of FOB trade terms, it is even more difficult for the seller to obtain evidence from the shipping company designated by the buyer to charter and book space. (2) CIF vs CFR First, the price composition of the two is different. CFR price is cost plus freight, while CIF price is cost, insurance premium and freight. Second, the responsibilities of the two are different. CFR is for the seller to handle the export transportation of goods, while CIF is for the seller to handle the export transportation and insurance of goods. Third, the costs borne by the two are different. CFR means that the seller bears the freight of the exported goods, while CIF means that the seller needs to bear the freight of the exported goods and insurance premium. (3) Comparison between FOB and CFR The specific differences between FOB and CFR are as follows: 1. CFR freight is paid by the seller and FOB freight is paid by the buyer 2. FOB} port of shipment 3. CFR # is on the basis of FOB plus freight 4. FOB free on board "free on board (... Named port of shipment)" means that when the goods cross the ship's rail, the seller completes the delivery. This means that the buyer must bear all risks after the goods cross the ship's rail. The fob term requires the seller to go through the customs clearance formalities for the export of the goods. 5. CFR "cost and freight (... Designated port of destination)" means that the seller completes the delivery when the goods cross the ship's rail, and the seller must pay the freight and expenses required to transport the goods to the designated port of destination.