CIF stands for Cost Insurance and Freight… (named port of destination), which means cost, insurance and freight (……designated port of destination). It means that the seller has completed delivery when the goods are loaded on board at the port of shipment. The seller must pay the freight and other expenses required to transport the goods to the designated port of destination, but the risk of loss or damage of the goods and any additional expenses caused by various events after delivery are transferred from the seller to the buyer. In addition, in addition to bearing the transportation procedures and costs, the seller must also arrange for marine insurance and pay the insurance premium.
CIF terms apply to water transportation.
Basic obligations of buyers and sellers
(1) Seller’s obligations
① Sign a transportation contract for the transportation of goods from the designated port of shipment to the designated port of destination; load the goods required by the contract on board at the time and port specified in the sales contract, and pay the freight to the port of destination; notify the buyer in time when loading.
② Bear all risks and costs before the goods are loaded on board at the port of shipment.
③ Arrange cargo transportation insurance at its own expense in accordance with the contract.
④ Obtain official export certificates at its own risk and expense, handle all customs formalities required for the export of goods, and pay export duties and other related fees.
⑤ Submit commercial invoices, insurance documents and delivery notes, or electronic records or procedural certificates with equivalent functions. (2) Buyer’s obligations
① Accept the relevant documents provided by the seller, receive the goods, and pay the purchase price in accordance with the contract. ② Bear all risks after the goods are loaded on board at the port of shipment.
③ Obtain official import certificates at its own risk and expense, handle all customs formalities required for the import of goods, and pay import duties and other related fees.