FOB & CIF

 it may stand for Free On Board or Freight On Board. FOB specifies which party 

(buyer or seller) pays for which shipment and loading costs, and/or where responsibility 

for the goods is transferred. The last distinction is important for determining liability for 

goods lost or damaged in transit from the seller to the buyer.

CIF:iT STAND FOR Cost, Insurance and Freight

A shorthand term for signifying that the price invoiced or quoted by

 a seller includes insurance and all other chargesup to the named port

 of destination. In comparison,carriage and insurance paid to (CIP) 

terms include insurance and all charges up to a named place in the 

country of destination (usually the buyer's warehouse). 

Difference Between FOB & CIF

1. “CIF” and “FOB” are two terms that are related to the shipping 

of goods and merchandise from the manufacturer to the buyer. “CIF” 

stands for “cost, insurance, and freight,” meaning that the buyer 

assumes responsibility for these items and that it is not in the price 

quoted. “FOB” stands for “free on board,” meaning that the 

manufacturer assumes responsibility for the items and it is in the 

price quoted to the buyer.
2. CIF is ideal for low volumes of shipping and new businesses. 

FOB is ideal for high volumes and expensive items.