This term applies only to sea and inland waterway transport. "Cost, Insurance and Freight" means that the seller delivers the goods on board the vessel or (for an intermediate seller) procures goods thus delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel at the port of shipment. The seller must contract for and pay the costs and freight necessary to carry the goods to the named port of destination. The seller must contract for insurance cover against the buyer's risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements. When CPT, CIP, CFR or CIF are used, the seller fulfils its obligation to the carrier when it hands the goods over to the carrier and not when the goods arrive at the destination. This rule has two critical points because risk and costs are transferred at different places. The contract usually specifies the destination port, but may not go further to specify the port of shipment, the place where risk transfers to the buyer. If the buyer is particularly concerned about the port of shipment, the parties are well advised to identify the port of shipment as precisely as possible in the contract. The parties are well advised to identify as precisely as possible the point within the agreed port of destination, because the costs up to that point are for the seller's account. The seller should check exactly within the agreed port of destination and bear the inspection costs. The seller must procure a contract of carriage that is suitable. If the seller incurs costs of unloading under its contract of carriage at the named port of destination, the seller is not entitled to recover such costs from the buyer unless otherwise agreed between the parties. The seller must deliver the goods on board the vessel or procure the goods already so delivered for carriage to the destination. In addition, the seller must enter into a contract of carriage or procure an equivalent contract. The reference to "procure" here caters for multiple sales down a chain ("string sales"), particularly common in the commodity trade. CIF is not suitable for goods handed over to the carrier before they are on board, e.g., goods in containers, which are typically delivered at a terminal. In such cases, CIP should be used. "Cost, Insurance and Freight" requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import, pay any import duty or carry out import customs formalities.
| A THE SELLER’ OBLIGATIONS | B THE BUYER’ OBLIGATIONS |
| A1 Seller’s general obligations The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract. Any document referred to in A1-A10 may be an equivalent electronic record or procedure if agreed between the parties or customary. | B1 Buyer’s general obligations The buyer must pay the price of the goods as provided in the contract of sale. Any document referred to in B1-B10 may be an equivalent electronic record or procedure if agreed between the parties or customary. |
| A2 Licences, authorisations, security clearances and other formalities For the transport of some important goods or between countries, customs formalities apply. Where applicable, the seller must obtain, at its own risk and cost, any export licence or other official authorisation and carry out all customs formalities necessary for the export of the goods. | B2 Licences, authorisations, security clearances and other formalities Where applicable, the buyer must obtain, at its own risk and cost, any import licence or other official authorisation and carry out all customs formalities necessary for the import of the goods. |
| A3 Contracts of carriage and insurance a) Contract of carriage The seller must contract or procure a contract for the carriage of the goods from the agreed point of delivery, if any, to the named port of destination, if any. The contract of carriage must be made on usual terms at the seller's cost and provide for the carriage of goods of the description contracted for by the usual route. b) Contract of insurance The seller must, at its own cost, obtain insurance cover at least to the minimum cover provided by Clauses (C) of the Institute Cargo Clauses (LMA/IUA) or any similar clause. The insurance shall be contracted with reputable insurers or insurance companies and entitle the buyer, or any other person having an insurable interest in the goods, to claim directly from the insurer. | B3 Contracts of carriage and insurance a) Contract of carriage The buyer has no obligation to the seller to make a contract of carriage. b) Contract of insurance The buyer has no obligation to the seller to make a contract of insurance. However, if the buyer wishes additional insurance beyond that provided for in A3b), it shall, upon request by the seller, provide the seller with any information needed for the seller to procure such additional insurance. At the buyer's request, risk and cost, and providing the seller with all necessary information, the seller shall provide additional insurance, if procurable, such as cover provided by Clauses (A) or (B) of the Institute Cargo Clauses (LMA/IUA) or any similar clauses, and/or cover complying with the Institute War Clauses and/or the Institute Strikes Clauses (LMA/IUA) or other similar clauses. The minimum amount of insurance shall be the contract price plus 10% (i.e., 110%) and shall be in the currency of the contract. The insurance shall cover the goods from the point of dispatch set out in A4 and A5 at least to the named port of destination. The seller must provide the buyer with the insurance policy or other evidence of insurance cover. In addition, at the buyer's request, risk and cost (if any), the seller must provide the buyer with any information the buyer needs to procure any additional insurance. |
| A4 Delivery The seller must deliver the goods by placing them on board the vessel or by procuring the goods so delivered. In either case, the seller must deliver the goods on the agreed date or within the agreed period, in the manner customary at the port. | B4 Taking delivery The buyer must take delivery of the goods when they have been delivered in accordance with A4 and receive the goods from the carrier at the named port of destination. |
| A5 Transfer of risks The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A4, except as provided for in B5. | B5 Transfer of risks The buyer bears all risks of loss of or damage to the goods from the time they have been delivered in accordance with A4. If the buyer fails to give notice in accordance with B7, then the buyer bears all risks of loss of or damage to the goods from the agreed date or the expiry date of the agreed period for delivery, provided that the goods have been clearly identified as the contract goods. |
| A6 Allocation of costs The seller must pay a) all costs relating to the goods until they have been delivered in accordance with A4, other than those payable by the buyer as provided for in B6; b) the freight and all other costs resulting from A3 a), including the costs of loading the goods and any charges for unloading at the port of destination which were for the seller's account under the contract of carriage; c) costs of insurance resulting from A3 b); d) where applicable, the costs of customs formalities necessary for export as well as all duties, taxes and other charges payable upon export, and the costs for their transit through any country, other than those resulting from the contract of carriage. | B6 Allocation of costs Other than as provided in A3 a), the buyer must pay a) all costs relating to the goods from the time they have been delivered in accordance with A4, except those payable by the seller as provided for in A6 d); b) all costs relating to the goods while in transit until their arrival at the port of destination, unless such costs were for the seller's account under the contract of carriage; c) costs of unloading including lighterage and wharfage charges, unless such costs were for the seller's account under the contract of carriage; d) any additional costs incurred if it fails to give notice in accordance with B7, provided that the goods have been clearly identified as the contract goods; e) where applicable, all duties, taxes and other charges as well as the costs of carrying out customs formalities payable upon import of the goods and the costs for their transit through any country, unless included in the cost of the contract of carriage; and f) any additional costs for additional insurance required resulting from A3 b) and B3 b). |
| A7 Notice to the buyer The seller must give the buyer any notice needed to enable the buyer to take measures that are normally necessary to enable the buyer to take delivery of the goods. | B7 Notice to the seller When the buyer is entitled to decide the time for shipping the goods and/or the point of receiving the goods within the named port of destination, the buyer must give the seller sufficient notice thereof. |
| A8 Transport document The seller must, at its own cost, provide the buyer without delay with the usual transport document for the agreed port of destination. This document must cover the contract goods, be dated within the period agreed for shipment, enable the buyer to take delivery of the goods from the carrier at the port of destination and, unless otherwise agreed, enable the buyer to sell the goods in transit by transferring the document to a subsequent buyer or by notification to the carrier. When such a transport document is issued in several originals, a full set of originals must be presented to the buyer. | B8 Proof of delivery The buyer must accept the transport document provided 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) that are necessary for the purpose of delivering the goods in accordance with A4, as well as the costs of any pre-shipment inspection mandated by the authorities of the country of export. The seller must, at its own cost, package the goods, unless it is customary for the particular trade to transport the type of goods sold unpackaged. The seller must package the goods in a manner suitable for their transport, unless the buyer has informed the seller of specific packaging requirements before the contract of sale is concluded. Marking of the packaging shall be appropriate. | B9 Inspection of goods The buyer must pay the costs of any mandatory pre-shipment inspection, except inspection mandated by the authorities of the country of export. |
| A10 Assistance with information and related costs Where applicable, at the buyer’s request, risk and cost, the seller must promptly provide or render assistance in obtaining for the buyer any documents and information, including security-related information, that the buyer needs for the import of the goods and/or for their transport to the final destination. The seller must reimburse the buyer for all costs incurred by the buyer in providing or rendering assistance in obtaining documents and information as referred to in B10. | B10 Assistance with information and related costs The buyer must promptly inform the seller of any security information requirements so that the seller can comply with A10. The buyer must reimburse the seller for all costs incurred and charges paid by the seller in providing or rendering assistance in obtaining documents and information as referred to in A10. Where applicable, at the seller's request, risk and cost, the buyer must promptly provide or render assistance in obtaining for the seller any documents and information, including security-related information, that the seller needs for the transport and export of the goods and for their transit through any country. |
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