B-6-7- Incoterms © 2000 cif


CIF: Cost, insurance and Freight, is one of the 13 Incoterms © 2000.



Incoterms 2000 ©
 CFR   CIF   CIP   CPT   DAF   DDP   DDU   DEQ   DES   EXW   FAS   FCA   FOB  


The Incoterms © 2000 CIF is an Incoterms © with main transport paid by the exporter.

The Incoterms © CIF 2000 is a "main carriage unpaid" Incoterm ©

The Incoterms © CIF 2000 is used for maritime transportation

The Incoterms © CIF 2000 has a variant.

6-7-1- Summary

The Incoterms © CIF is similar to the Incoterms © CFR, but with an additional obligation for the exporter to provide maritime insurance against damage and loss during transport.

Post-delivery, the risk of damage and loss, along with other costs, are transferred from the exporter to the importer at the named port.

The insurance provided by the exporter is minimal FPA (Free of Particular Average) + 1O% CIF. It is recommended that the importer obtains additional insurance. A price increase can be expected, but check with your insurer.

This Incoterms © is for maritime transport, with main carriage costs charged to the importer.

This Incoterms © can be used if both parties, the exporter and the importer don't want the goods being considered delivered when they passe the ship's rail.

6-7-2- From the viewpoint of the importer

This Incoterm © is dedicated to maritime and river transport. The main carriage must be paid by the importer. Import customs taxes and duties must be paid by the importer. The importer is responsible for unloading, but not accountable for unloading fees. Risk transfer takes place as soon as the goods are loaded on the ship, after "passed the ship's rail".
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6-7-3- Advantages for the importer

The importer is responsible for loading and unloading in its own country and pays for customs clearance. The importer does not pay for unloading. Extensice knowledge of the marketplace leads to higher-quality services and beneficial price-points from carriers. In this case, insurance is assured and additional insurance coverage can be obtained depending on additional risks.

6-7-4- From the viewpoint of the exporter

The exporter is responsible for packaging. The exporter pays carriage fees up to arrival at the destination port. It is the main transport Transport insurance must be paid by the exporter, unlike Incoterms © CFR or Incoterms © CPT in the same category.

6-7-5- Advantages for the exporter

This Incoterm © is of interest to the exporter if lacking the logistical capabilities in its own country. Post-delivery costs are borne by the importer.

6-7-6- The point of ownership transfer: on board the ship.


Risk transfer takes place "passed the ship's rail," as soon as the transport document is accepted.


6-7-7-Incoterms © CIF 2000: Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Choice of carrier  Exporter  Exporter
 Pre-transport  Exporter  Exporter
 Loading  Exporter  Exporter
 Costs of loading  Exporter  Exporter
 Unloading  Importer  Importer
 Costs of unloading  Exporter  Importer
 Transport payment  Exporter up until the destination port  Importer (Main carriage)
 Insurance payment  Exporter insurance FPA ( CIF + 10%)  
 Import customs fees  Importer  Importer
 Export customs fees  Exporter  Exporter
 Post-transport  Importer  Importer