CIF

The term CIF, or "Cost, Insurance, and Freight", is an international sales term used in maritime trade. Under this condition, the seller is responsible for the costs, insurance, and freight necessary to transport the goods to the agreed destination port. This means that the seller must not only arrange maritime transport but also take out insurance covering the risks of loss or damage during transport.

Seller's Responsibilities

1. Maritime Transport: The seller must arrange and pay for the transport of the goods to the port of arrival.
2. Insurance: They must take out marine insurance covering at least 110% of the value of the goods, according to the terms of the insurance policy.
3. Documents: The seller must provide all necessary documents for customs clearance at import, including the bill of lading and the insurance policy.

Buyer's Responsibilities

Once the goods arrive at the destination port, the buyer takes on all additional costs, including unloading, customs duties, and transport to the final destination.

Practical Tips

• Check the Insurance: Ensure that the insurance coverage is adequate and meets your specific needs.
• Clarify the Terms: Clearly discuss the CIF terms in the contract to avoid any ambiguity.
• Logistical Coordination: Be prepared to manage logistics from the destination port to avoid delays.

By choosing CIF, buyers benefit from a certain peace of mind, knowing that the seller handles the critical aspects of transport and insurance up to the port's arrival. However, it is crucial for both parties to fully understand their respective obligations to ensure a smooth and seamless transaction.