i. FOB. The term FOB stands for Freight On Board.
When you purchase 'something' and pay for it with terms 'FOB origin'
it means the responsibility of the Seller (XIA) stops when the 'goods'
are delivered to the transporting company at our factory. That means
it is the responsibility of the Buyer (meaning you) to pay for transportation.
We either Pre-Pay (for transportation)-and-Add (PPA) to your invoice
or we use your transporting company (using your account number or your
Visa/ MasterCard etc.). You also decide if you want to purchase loss/damage
insurance or take a chance and don't insure.
It also means if something gets lost or is damaged during transport,
it is between You (the Buyer) and the transportation company to settle
it. We will, of course, co-operate with you and the carrier to the best
of our ability.
Example 1. XYZ Ltd. in China buys an instrument from
XIA and pays for it FOB Origin. XYZ Ltd. has an account with ABC Transport.
XYZ Ltd. also has a company wide Insurance Policy with ACME INSURANCE
of Taiwan. When the shipment is ready, XIA will call ABC Transport to
come and pick it up. After pick up XIA is out of the picture (unless,
of course, there is something wrong with the instrument that has nothing
to do with transportation).
And of course, if a damage occurs, we will work with you and your transportation
company to do the forms you need to file a 'claim'. However please don't
expect us to send you a free replacement instrument !
Example 2. You buy a instrument and pay FOB Origin.
You have an account with DHL. You give us your account number and ask
us to ship it via DHL and insure the instrument for $10,000 with DHL.
After pick up, it is between you and DHL. Again, because the shipper
always has to file the 'claim forms', we will work with you and your
transport company if anything happens. However we can not send you a
free instrument as replacement!
ii. CIF. The term CIF stands for Cost (of the product) + Insurance
When you purchase 'something' and pay for it with terms 'CIF Destination',
it means you pay XIA for Cost of the goods + cost of Insurance + cost
of Transportation to Destination and XIA will buy insurance and will
pay for transporting the goods to destination (your place).
For CIF Destination you must ask XIA to calculate the CIF cost for your
particular purchase to your particular destination (International customers
pay applicable duties and import taxes in their own country).
Also you have to decide what is your level of comfort with 'damage
or loss of goods'. instruments are expensive and delicate. You must
decide how much you want to spend on insurance.
Example 3. GammaRayTex Gmbh. in Munich, Germany wants
to buy a instrument from XIA and pay for it "CIF Munich".
XIA will send GammaRayTex Gmbh. a Proforma Invoice that shows all the
costs including dimensions and weights. XIA will also tell you about
your insurance options for 'loss', for 'damage' for 'replacement' etc.
A final invoice will be sent to GammaRayTex Gmbh. only after all the
shipping and insurance details have been worked out.
iii. C&F. The term C&F stands for Cost (of the product)
If you ask for C&F, it means you pay FOB plus cost of transportation
to your place but you don't want insurance because your company is covered
by an independent policy (purchaser pays applicable duties and import
taxes in his own country).
For C&F terms you should have independent insurance because in case
of Loss or Damage you will get nothing from the carrier.
Due to the high value of our products, we strongly recommend that the
purchaser obtain adequate insurance to cover any possible Loss and / or
Damage to the goods.
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