• CIF ( Cost Insurance Freight )
Cost, Insurance, and Freight, this type of Incoterm mean that the supplier of the goods or services is in the position where he will undertake the liability of the supplies until it is delivered to the port of the buyer, in simple words he will undertake the liability of the transportation of the supplies including the expenses of insurance and the freight charges.
• FOB
In this type of contract, the seller’s liability is extended up to the point of loading of the supplies to the ship including the export clearance from the port of the origin. After the loading of the supplies onto the ship and handing over the export documents to the buyer, the ownership will be transferred to the buyer including the responsibility of the supplies and further costs must be incurred by him.
These are some of the common Incoterms that are used by the business companies in UAE with the motive of simplifying international trade and reducing the conflicts of understanding and the language between the international traders. All these Incoterms may have their different usages, an importer in UAE must always analyze the Incoterms used while entering into a contract and it must also duly identify the point of taxation as per the UAE VAT law.
