What is CIF incoterms?

CIF - Cost, Insurance, Freight (named port of destination)

 

In CIF terms, the seller clears the goods at origin places the cargo on board and provide a minimum amount of marine insurance on the goods being shipped until port of discharge. Even though the seller pays for insurance during the main carriage, the risk is transferred to the buyer at time the goods are on board. The first charge to the buyer is the terminal handling at the destination port.

Especially, CIF terms are utilized effectively to import full container load (FCL) shipments.  This is on the ground the shipping lines can act consistently which prevents fluctuations in agent’s handover fees or hidden charges.

This term can be used for Sea and Inland water transport only.

 

Obligation and expenses of seller:-

All responsibilities and charges should incur by seller include Warehouse Services, Export packing, assistance in obtaining any exports licence or other official authorisation, loading at point of Origin, Origin Inland Freight, Origin Port Charges, Export Customs clearance, Origin Forwarder Fees, Ocean/Air Freight, and Insurance.

 

Obligation and expenses of Buyer:-

All responsibilities and charges must incurs by Buyer includes Destination Port Charges, Import Customs clearance, Import Duties and Taxes, Delivery cartage to Final Destination.


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