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About the difference between CIP and CIF trading methods

The differences between CIP and CIF transaction methods are:

1. Different transportation methods: CIP is suitable for various transportation methods; CIF is suitable for water transportation.

2. Different delivery locations: CIP delivery location must be agreed upon by both parties based on different transportation methods; CIF delivery location is at the shipping port.

3. The boundaries of risk division are different: CIP risk is transferred when the carrier controls the goods; CIF risk division is based on the ship's rail at the port of shipment.

4. The responsibilities and costs borne by the seller are different:

(1) The CIP seller is responsible for signing the transportation contract, and the insurance handled is not only water transportation insurance, but also various transportation insurances .

(2) The CIF seller is responsible for chartering the ship and booking space, paying the freight from the shipping port to the destination port, applying for water transportation insurance, and paying the insurance premium.

Classification of transaction methods:

Transaction methods can be divided as follows from different perspectives:

(1) According to the different batches of commodity transactions, transactions can be divided into The methods are divided into wholesale transactions and retail transactions.

(2) According to different commodity trading times, trading methods can be divided into spot trading, forward contract trading and futures trading.

(3) According to the different commodity transaction processes, transaction methods can be divided into direct transactions and indirect transactions. Direct transactions generally involve direct transactions between producers and consumers.

(4) According to the different payment methods for commodity transactions, the transaction methods can be divided into cash transactions and non-cash transactions. Cash transactions are generally transactions conducted by paying cash directly.

(5) According to the different changes in property rights of commodity transactions, the transaction methods can be divided into independent transactions and trust transactions.

(6) According to the different degrees of freedom of commodity trading, trading methods can be divided into free trading and forced trading.

(7) According to the different ownership transfers in commodity transactions, the transaction methods can be divided into purchase transactions and leasing transactions.

(8) According to the different contractual relationships in commodity transactions, transaction methods can be divided into contract transactions and non-contract transactions.

(9) According to the different entrustment relationships in commodity transactions, transaction methods can be divided into distribution transactions and underwriting transactions. Underwriting means that the seller gives foreign customers the exclusive right to sell designated goods in a specific region and within a certain period of time. The relationship between the two parties is a sales relationship.

(10) According to different trading conditions in commodity transactions, transaction methods can be divided into special transactions and general transactions.