Information International rules and organizations Incoterms 2000 [iNKOTERMS 2000] Term C Cost, insurance and freight - CIF

CIF(Cost, Insurance and Freight (... named port of destination).)
Cost, insurance and freight (... named port of destination)

The term "Cost, insurance and freight" means that the seller has delivered when the goods have passed the ship's rail at 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 or damage to the goods, as well as any additional costs incurred after the goods have been shipped, is transferred from the seller to the buyer.
However, under the terms of the CIF term, the seller is also obliged to purchase marine insurance in favor of the buyer against the risk of loss and damage to the goods during transport.
Therefore, the seller is obliged to conclude an insurance contract and pay insurance premiums. The buyer should take into account that under the terms of the CIF term, the seller is required to provide insurance with only minimal coverage.
In the event that the buyer wishes to have insurance with greater coverage, he must either specifically agree on this with the seller, or take steps to conclude additional insurance himself.
Under the terms of the CIF term, the seller is responsible for clearing the goods for export.
This term can only be used when goods are transported by sea or inland waterways. If the parties do not intend to deliver the goods across the ship's rail, the term CIP should be used.

RESPONSIBILITIES OF THE SELLER

BUYER'S RESPONSIBILITIES

A.1. DELIVERY OF THE GOODS IN ACCORDANCE WITH THE CONTRACT

B.1. PAYMENT OF THE PRICE

The seller is obliged, in accordance with the sales contract, to provide the buyer with the goods, a commercial invoice or equivalent electronic message, as well as any other evidence of conformity that may be required under the terms of the sales contract.

The buyer is obliged to pay the price of the goods stipulated by the contract of sale.

A.2. LICENSES, CERTIFICATES AND FORMALITIES

B.2. LICENSES, CERTIFICATES AND FORMALITIES

The seller must, at his own expense and risk, obtain any export license or other official authorization and carry out, if required, all customs formalities for the export of the goods.

The buyer must obtain at his own expense and risk any import license or other official authorization and carry out, if necessary, all customs formalities for the importation of the goods and for their transit through third countries.

A.3. CONTRACTS OF CARRIAGE AND INSURANCE

B.3. CONTRACTS OF CARRIAGE AND INSURANCE

A) contract of carriage
The seller must contract at his own expense under normal conditions for the carriage of the goods to the named port of destination along the usual shipping route in a sea (or suitable for inland waterway transport) vessel of a type normally used for the transport of goods similar to those specified in the contract of purchase. sales.
B) Insurance contract
The seller must provide at his own expense - as agreed in the contract of sale - cargo insurance on terms that allow the buyer or other person with an insurable interest to apply directly to the insurer, as well as provide the buyer with an insurance policy or other evidence of insurance coverage. Insurance must be from an insurer or an insurance company of good repute and, unless specifically agreed to the contrary, insurance must be in accordance with the minimum coverage in accordance with the Institute Cargo Clauses. /Institute of London Underwriters/) or any similar collection of treaty articles. The duration of insurance coverage must comply with Articles B.4. and B.5. At the request of the buyer and at his expense, the seller must take out insurance against war risks, strikes, riots and other civil unrest, if possible. The insurance must cover at least the price stipulated in the sales contract plus 10% (i.e. 110%) and must be concluded in the currency of the sales contract.

A) contract of carriage
No commitment.
B) Insurance contract
No commitment.

A.4. SUPPLY

B.4. ACCEPTANCE OF DELIVERY

The seller is obliged to load the goods on board the ship at the port of shipment on the date or within the agreed time.

The buyer must take delivery of the goods in accordance with article A.4. and receive the goods from the carrier at the named port of destination.

A.5. RISK TRANSFER

B.5. RISK TRANSFER

The seller is obliged, subject to the provisions of Article B.5. bear all risks of loss or damage to the goods until the goods pass the ship's rail at the port of shipment.

The buyer is obliged to bear all risks of loss or damage to the goods from the moment the goods pass the ship's rail at the port of shipment. The buyer is obliged - if he fails to fulfill his obligation to give a notice in accordance with Article B.7. - bear all risks of loss or damage to the goods from the expiration of the agreed date or the end date of the fixed shipment period. The condition, however, is the proper conformity of the goods with the contract. This means that the goods must be properly identified, i.e. definitely isolated or otherwise identified as the goods that are the subject of this contract.

A.6. COST ALLOCATION

B.6. COST ALLOCATION

The seller is obliged, subject to the provisions of article B.6.: - to bear all costs associated with the goods until they are delivered in accordance with article A.4., and - to pay the freight and all costs arising from article A.3a), including costs loading the goods on board the ship, and - bear the costs associated with the purchase of insurance in accordance with Article A.3b), and - pay any costs for unloading the goods at the agreed port of discharge, which, according to the contract of carriage, are borne by the seller, and also - pay , if required, all costs associated with the performance of customs formalities for export, as well as other duties, taxes and other charges payable upon export of the goods, and associated with its transit through third countries in cases where the costs under the contract of carriage are assigned on the seller.

The buyer must, subject to the provisions of article A.3a): - bear all costs associated with the goods from the moment they are delivered in accordance with article A.4., and - bear all costs and charges associated with the goods during their transit until arrival at the port of destination, unless they are borne by the seller under the contract of carriage, and - pay the costs of unloading the goods, including the costs of paying lighter and berthing dues, except when they are borne by the seller under the contract of carriage, and - bear all additional costs due to their failure to fulfill their obligation to give proper notice in accordance with Article B.7. from the agreed date or from the expiration of the agreed time for delivery. The condition, however, is the proper conformity of the goods with the contract. This means that the goods must be properly identified, i.e., definitely separated or otherwise identified as the goods that are the subject of this contract, and - pay, if necessary, all duties, taxes and other fees, as well as the costs of customs formalities payable upon import of the goods, and, if necessary, for its transit through third countries, if they are not assigned to the seller when drawing up a contract of carriage.

A.7. NOTICE TO THE BUYER

B.7. NOTICE TO SELLER

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A.4., as well as give the buyer any other notice required for him to take the usual steps necessary to obtain the goods.

If the buyer has the right to determine the period during which the goods must be shipped, and / or the port of destination, he is obliged to properly notify the seller about this.

A.8. PROOF OF DELIVERY, TRANSPORT DOCUMENTS OR EQUIVALENT ELECTRONIC MESSAGES

B.8. PROOF OF DELIVERY, TRANSPORT DOCUMENTS OR EQUIVALENT ELECTRONIC MESSAGES

The seller must promptly provide the buyer at his own expense with the usual transport document issued for the agreed port of destination. This document (e.g. negotiable bill of lading, non-negotiable sea waybill, proof of carriage by inland waterway) must apply to the goods sold, be dated within the time agreed for the shipment of the goods, and enable the buyer to receive the goods from the carrier at the port of destination, and, unless otherwise agreed, enable the buyer to sell the goods to a third party during transit by means of an endorsement (negotiable bill of lading) or by notifying the carrier. If several originals of the transport document are issued, the full set of originals must be handed over to the buyer. In the event that the seller and the buyer have agreed on the use of electronic communication means, the documents mentioned above may be replaced by equivalent electronic messages (EDI).

The buyer is obliged to accept the provisions of article A.8. transport document, if it complies with the terms of the contract of sale.

A.9. CHECK - PACKAGING - MARKING

B.9. GOODS INSPECTION

The seller must bear the costs associated with the verification of the goods (for example, checking the quality, dimensions, weight, quantity) necessary for the delivery of the goods in accordance with Article A.4. The seller must, at his own expense, provide the packaging (unless it is customary in the trade in question to ship the contracted goods unpackaged) necessary for the transport of the goods arranged by him. The packaging must be properly labelled.

The buyer must bear the cost of any pre-shipment inspection of the goods unless such inspection is required by the authorities of the country of export.

A.10. OTHER LIABILITIES

B.10. OTHER LIABILITIES

The seller is obliged, at the request of the buyer, to provide the latter, at his expense and risk, with full cooperation in obtaining any documents or equivalent electronic messages (other than those mentioned in article A.8.) issued or used in the country of dispatch and / or in the country of origin of the goods, which may be required by the buyer for the importation of the goods or, if necessary, for their transit through third countries. The seller is obliged to provide the buyer, at his request, with all the information necessary for the implementation of additional insurance.

The buyer must bear all costs and fees associated with the receipt of documents or equivalent electronic messages, as provided in Article A.10., and also reimburse the seller's expenses incurred by the latter as a result of his assistance to the buyer. The buyer is obliged to provide the seller, at his request, with all the information necessary for the implementation of insurance.

 
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