08 November 2013
Revenue recognition for exports on CIF basis.
Cost, Insurance and Freight (CIF) – An international trade term of sale in which, for the quoted price, the seller/exporter/manufacturer clears the goods past the ship’s rail at the port of shipment (not destination). The seller is also responsible for paying for the costs associated with transport of the goods to the named port at destination. However, once the goods pass the ship’s rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs. The seller is also responsible for procuring and paying for marine insurance in the buyer’s name for the shipment. The Cost and Freight term is used only for ocean or inland waterway transport.
08 November 2013
govt also provide incentive to exporter on FOB basis .
Trade terms: Domestic sales use trade terms such as “FOB Factory” as defined under the Uniform Commercial Code of the United States. One of the benefits of this trade term is that title of the goods passes to the buyer at dock. When businesses engage in international trade, they cannot rely on the Uniform Commercial Code or domestic trade terms and should use the trade terms recognized by international traders, the Incoterms as described in Module 6.
08 November 2013
import duty provided by importer as CIF BASIS.
In case of export by sea or air, the exporter must submit the 'Shipping Bill', and in case of export by road he must submit 'Bill of Export' in the prescribed form containing the prescribed details such as the name of the exporter, consignee, invoice number, details of packing, description of goods, quantity, FOB value, etc. Along with the Shipping Bill, other documents such as copy of packing list, invoices, export contract, letter of credit, etc. are also to be submitted. There are 5 types of shipping bills
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