COST INSURANCE AND FREIGHT

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COST INSURANCE & FREIGHT (CIF)

CIF – named port of destination.
Cost, Insurance and freight means that the seller delivers when the goods pass the ships 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 risks of loss of or damage to the goods during carriage. (Official INCOTERMS). Selling goods CIF enables the seller to remain in control of goods up to arrival at the named destination. The buyer is responsible for all the costs on arrival including the unloading costs. Buying CIF removes any need to be involved in the shipping process. Goods may not arrive when you require them and you will not have control over shipping costs.

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of the British International Freight Association (latest edition)
copies of which are available upon request.
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