INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS
CIF - Cost, Insurance and Freight (... named port of destination)
"Cost, Insurance and Freight" means that the seller delivers when the goods pass the ship's 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.
CIF the seller also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage.
Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is required to obtain insurance only on minimum cover (Refer to Introduction paragraph 9.3). Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements.
The CIF term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the CIP term should be used.
|THE SELLER'S OBLIGATIONS||THE BUYER'S OBLIGATIONS|
|A1 Provision of goods in conformity with the contract
The seller must provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
|B1 Payment of the price
The buyer must pay the price as provided in the contract of sale.
|A2 Licences, authorisations and formalities
The seller must obtain at his own risk and expense any export licence or other official authorisation and carry out, where applicable (Refer to Introduction paragraph 14) , all customs formalities necessary for the export of the goods.
|B2 Licences, authorisations and formalities
The buyer must obtain at his own risk and expense any import licence or other official authorisation and carry out, where applicable (Refer to Introduction paragraph 14), , all customs formalities for the import of the goods and for their transit through any country.
|A3 Contracts of carriage and insurance
||B3 Contracts of carriage and insurance
The seller must deliver the goods on board the vessel at the port of shipment on the date or within the agreed period.
|B4 Taking delivery
The buyer must accept delivery of the goods when they have been delivered in accordance with A4 and receive them from the carrier at the named port of destination.
|A5 Transfer of risks
The seller must, subject to the provisions of B5, bear all risks of loss of or damage to the goods until such time as they have passed the ship's rail at the port of shipment.
|B5 Transfer of risks
The buyer must bear all risks of loss of or damage to the goods from the time they have passed the ship's rail at the port of shipment.
|A6 Division of costs
The seller must, subject to the provisions of B6, pay
|B6 Division of costs
The buyer must, subject to the provisions of A3, pay
|A7 Notice to the buyer
The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4 as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
|B7 Notice to the seller
The buyer must, whenever he is entitled to determine the time for shipping the goods and/or the port of destination, give the seller sufficient notice thereof.
|A8 Proof of delivery, transport document or equivalent electronic message
The seller must, at his own expense, provide the buyer without delay with the usual transport document for the agreed port of destination.
|B8 Proof of delivery, transport document or equivalent electronic message
The buyer must accept the transport document in accordance with A8 if it is in conformity with the contract.
|A9 Checking - packaging - marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A4.
|B9 Inspection of goods
The buyer must pay the costs of any pre-shipment inspection except when such inspection is mandated by the authorities of the country of export.
|A10 Other obligations
The seller must render the buyer at the latter's request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A8) issued or transmitted in the country of shipment and/or of origin which the buyer may require for the import of the goods and, where necessary, for their transit through any country.
|B10 Other obligations
The buyer must pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A10 and reimburse those incurred by the seller in rendering his assistance in accordance therewith.