CIF – Cost Insurance and Freight

//CIF – Cost Insurance and Freight
CIF – Cost Insurance and Freight2017-07-03T13:33:32+00:00

Seller

Like the CFR term with the additional obligation for the seller to provide marine insurance against the risk of loss or damage of goods. The seller pays the insurance premium. The insurance must be under the minimum guarantee clauses stipulated in the powers of the Institute of London Underwriters, or any number of similar clauses. Should at least cover the price provided in the contract, increased by 10%, and should be indicated in the currency of the contract. It is an FPA (Franco of Particular Average) 110% sure of the value. It is possible to recharge up to 20% without justification. A higher surcharge may be admitted by insurers if warranted. This surcharge value is used to cover expenses for damage (cost of preparing the dossier and monitoring, mapping, etc.) and financial losses (interest) between the time of loss and compensation by insurers.

Buyer

Assumes the risk of transport when the goods have been delivered on board the ship at the port of shipment. You should check and receive the goods from the carrier at the port of destination.
Buyers appreciate this Incoterm, because they are released from the logistical formalities.
The information and documents related to security that requires the buyer for export and / or import and / or transport to the final destination must be delivered by the seller to the buyer, upon request and assuming the costs and risks.