Term
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| Description |
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 the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. In addition, the seller has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage. The CIF term requires the seller to clear the goods for export. This term can only be used for sea and inland waterway transport (12). |
| Source |
United Nations, International Merchandise Trade Statistics — Concepts and Definitions. Statistics Division, Series F, No. 52, Rev. 2 (United Nations publication, Sales No. E.98.XVII.16). |
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