CIF COST, INSURANCE AND FREIGHT (... named port
of destination)
«Cost, Insurance and Freight» means that the
seller
delivers when the goods pass the ship's rail in the port of
shipment.
The seller must pay the costs and freight necessary
to bring the goods to the named port of destination BUT the risk of
loss of or damage to the goods, as well as any additional costs due
to events occurring after the time of delivery, are transferred from
the seller to the buyer. However, in CIF the seller also has to
procure marine insurance against the buyer's risk of loss of or
damage to the goods during the carriage.
Consequently, the seller contracts for insurance
and pays the insurance premium. The buyer should note that under the
CIF term the seller is required to obtain insurance only on minimum
cover. Should the buyer wish to have the protection of greater
cover, he would either need to agree as much expressly with the
seller or to make his own extra insurance arrangements.
The CIF term requires the seller to clear the goods
for export. This term can be used only for sea and inland waterway
transport. If the parties do not intend to deliver the goods across
the ship's rail, the CIP term should be used.
THE SELLER'S OBLIGATIONS |
THE BUYER'S OBLIGATIONS |
A1 Provision of goods in
conformity with the contract The seller must provide the goods
and the commercial invoice, or its equivalent electronic
message, in conformity with the contract of sale and any other
evidence of conformity which may be required by the contract.
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B1 Payment of the price The
buyer must pay the price as provided in the contract of sale.
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A2 Licences, authorisations and formalities The
seller must obtain at his own risk and expense any export
licence or other official authorisation and carry out, where
applicable, all customs formalities necessary for the export
of the goods. |
B2 Licences, authorisations and formalities The
buyer must obtain at his own risk and expense any import
licence or other official authorisation and carry out, where
applicable, all customs formalities for the import of the
goods and for their transit through any country. |
A3 Contracts of carriage and
insurance a) Contract of carriage The seller must contract on
usual terms at his own expense for the carriage of the goods
to the named port of destination by the usual route in a
seagoing vessel (or inland waterway vessel as the case may be)
of the type normally used for the transport of goods of the
contract description. b) Contract of insurance No obligation.
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B3 Contracts of carriage and
insurance a) Contract of carriage No obligation b) Contract of
insurance No obligation. |
A4 Delivery The seller must deliver the goods
on board the vessel at the port of shipment on the date or
within the agreed period. |
B4 Taking delivery The buyer must accept
delivery of the goods when they have been delivered in
accordance with A4 and receive them from the carrier at the
named port of destination. |
A5 Transfer of risks The seller
must, subject to the provisions of B5, bear all risks of loss
of or damage to the goods until such time as they have passed
the ship's rail at the port of shipment. |
B5 Transfer of risks The buyer
must bear all risks of loss of or damage to the goods from the
time they have passed the ship's rail at the port of
shipment. The buyer must, should he fail to give notice in
accordance with B7, bear all risks of loss of or damage to the
goods from the agreed date or the expiry date of the period
fixed for shipment provided, however, that the goods have been
duly appropriated to the contract, that is to say, clearly set
aside or otherwise identified as the contract goods. |
A6 Division of costs The seller must, subject
to the provisions of B6. pay • all costs relating to the goods
until such time as they have been delivered in accordance with
A4; and • the freight and all other costs resulting from A3
a), including the costs of loading the goods on board; and •
the costs of insurance resulting from A3 b); and • any charges
for unloading at the agreed port of discharge which were for
the seller's account under the contract of carriage; and •
where applicable, the costs of customs formalities necessary
for export as well as all duties, taxes and other charges
payable upon export, and for their transit through any country
if they were for the seller's account under the contract of
carriage. |
B6 Division of costs The buyer must, subject to
the provisions of A3, pay • all costs relating to the goods
from the time they have been delivered in accordance with A4;
and • all costs and charges relating to the goods whilst in
transit until their arrival at the port of destination, unless
such costs and charges were for the seller's account under the
contract of carriage; and • unloading costs including
lighterage and wharfage charges, unless such costs and charges
were for the seller's account under the contract of carriage;
and • all additional costs incurred if he fails to give notice
in accordance with B7, for the goods from the agreed date or
the expiry date of the period fixed for shipment, provided,
however, that the goods have been duly appropriated to the
contract, that is to say, clearly set aside or otherwise
identified as the contract goods; and • where applicable, all
duties, taxes and other charges as well as the costs of
carrying out customs formalities payable upon import of the
goods and, where necessary, for their transit through any
country unless included within the cost of the contract of
carriage. |
A7 Notice to the buyer The seller must give the
buyer sufficient notice that the goods have been delivered in
accordance with A4 as well as any other notice required in
order to allow the buyer to take measures which are normally
necessary to enable him to take the goods. |
B7 Notice to the seller The buyer must,
whenever he is entitled to determine the time for shipping the
goods and/or the port of destination, give the seller
sufficient notice thereof. |
A8 Proof of delivery, transport document or
equivalent electronic message The seller must, at his own
expense, provide the buyer without delay with the usual
transport document for the agreed port of destination. This
document (for example a negotiable bill of lading, a
non-negotiable sea waybill or an inland waterway document)
must cover the contract goods, be dated within the period
agreed for shipment, enable the buyer to claim the goods from
the carrier at the port of destination and, unless otherwise
agreed, enable the buyer to sell the goods in transit by the
transfer of the document to a subsequent buyer (the negotiable
bill of lading) or by notification to the carrier. When such a
transport document is issued in several originals, a full set
of originals must be presented to the buyer. Where the seller
and the buyer have agreed to communicate electronically, the
document referred to in the preceding paragraphs may be
replaced by an equivalent electronic data interchange (EDI)
message. |
B8 Proof of delivery, transport document or
equivalent electronic message The buyer must accept the
transport document in accordance with A8 if it is in
conformity with the contract. |
A9 Checking - packaging -
marking The seller must pay the costs of those checking
operations (such as checking quality, measuring, weighing,
counting) which are necessary for the purpose of delivering
the goods in accordance with A4. The seller must provide at
his own expense packaging (unless it is usual for the
particular trade to ship the goods of the contract description
unpacked) which is required for the transport of the goods
arranged by him. Packaging is to be marked appropriately. |
B9 Inspection of goods The
buyer must pay the costs of any pre-shipment inspection except
when such inspection is mandated by the authorities of the
country of export. |
A10 Other obligations The seller must render
the buyer at the latter's request, risk and expense, every
assistance in obtaining any documents or equivalent electronic
messages (other than those mentioned in A8) issued or
transmitted in the country of shipment and/or of origin which
the buyer may require for the import of the goods and, where
necessary, for their transit through any country. The seller
must provide the buyer, upon request, with the necessary
information for procuring any additional insurance. |
B10 Other obligations The buyer must pay all
costs and charges incurred in obtaining the documents or
equivalent electronic messages mentioned in A10 and reimburse
those incurred by the seller in rendering his assistance in
accordance therewith. The buyer must provide the seller, upon
request, with the necessary information for procuring
insurance. | |