B-6-20- Incoterms © 2010 cif


CIF: Cost, insurance and Freight, is one of the 11 Incoterms © 2010.





Incoterms 2010 ©
 CFR   CIF   CIP   CPT   DAP   DAT   DDP   EXW   FAS   FCA   FOB  


The Incoterms © 2010 CIF is an Incoterm © with main transport paid by the exporter.

The Incoterms © CIF 2010 is a "main carriage unpaid" Incoterm ©

The Incoterms © CIF 2010 is used for maritime transportation

The Incoterms © CIF 2010 has a variant.

6-20-1- 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.

6-20-2- 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 must be paid by the importer. The importer is responsible for the physical unloading, but not the associated fees.
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6-20-3- 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.

6-20-4- 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.

6-20-5- Advantages for the exporter

This Incoterm © is of interest to the exporter if lacking the logistical capabilities in its own country.

6-20-6- The point of ownership transfer: on board the ship.


This Incoterms © is dedicated to bulk transportation. The risk transfer point is no longer "passing the rail" as in Incoterms © 2000.


6-20-7-Incoterms © CIF 2010: Distribution of costs and risks

 Description

 Costs

Risks
 Packaging  Exporter  Exporter
 Loading at the factory  Exporter  Exporter
 Pre-transport  Exporter  Exporter
 Export customs  Exporter  Exporter
 Handling on departure  Exporter  Exporter
 Main transport  Exporter  Importer
 Transportation insurance  Exporter Insurance FPA (Free of Particular Average)  
 Handling on arrival  Importer  Importer
 Import customs  Importer  Importer
 Post-transport  Importer  Importer
 Unloading at the factory  Importer  Importer