Description
trees grow in the wild. Not grown artificially
LC - security purchases for the buyer
CIF Cost, Insurance and
Freight:
Risk passes to buyer when delivered on board the ship.
Seller
arranges and pays cost, freight and insurance to destination
port.
“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 risks 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 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.
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.
!!! worldwide - port of destination !!!
