6) Under CIF Incoterm rule the seller’s obligation in terms of risk ends once the cargo has been delivered on board the ship and not when it reaches the named destination. Read on for our in-depth overview. It clearly eases the buying of goods across national boundaries, especially so where distance is involved. So long as you specify which set of rules you’re using, there’s no obligation for you to use the latest set of rules in a contract. CIF and CIP (“carriage and insurance paid to”) are the only two rules that specify that the seller is responsible for insurance. This rule is to be used only for sea or inland waterway transport. In such cases, a more suitable Incoterms rule such as CPT or DAP may be used. All risks from then till Hamburg will be for the buyer, but the cost will still be that of the seller. This category only includes cookies that ensures basic functionalities and security features of the website.
Cost & Freight; Cost Insurance & Freight; Common mistakes; Online course; Frequently asked questions; The US view; Cost Insurance and Freight (CIF) Use of this rule is restricted to goods transported by sea or inland waterway. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Therefore a seller needs to know when to agree on the Incoterm CIF. The seller is expected to ensure that the insurance cover is equal to the commercial value of the product + 10%. 8) As an example, if the cargo is moving from Shanghai to Hamburg, and the terms of sale is based on CIF Hamburg, the seller’s risk ceases when the container has been loaded on board the ship in Shanghai. However, risk transfers at an earlier point. Money never crosses borders, fees stay low and you save cash.
relating to the cargo, Paying for the loading and unloading costs of the cargo on/from the ship, Handle any movement past the agreed place of destination, Cover the risk to cargo from the time the seller delivers the cargo on board the ship, Handle any and all import permits, quotas, special documentation, etc. Cookies zu Einstellungen werden genutzt, um die persönlichen Einstellung des Nutzers auf der Seite zu speichern, wie etwa die Spracheinstellung des Nutzers. The abbreviation CIF stands for cost, insurance, and freight. As with all Incoterms®, it is important that the seller and buyer have an express agreement on the point of delivery and any extra requirements that may be required by the buyer from the seller. If the buyer’s premises or place of delivery is based in an inland location, CIF would not be the correct Incoterms rule to use as CIF is only used for transport by sea and does not include other modes of transportation. Were there any key changes in 2020? 6.ICC - What are the key changes in Incoterms® 2020? var b = document.createElement("script"); We are passionately committed to global trade and strive to increase global prosperity while driving sustainability. Diese Cookies helfen Informationen wie die Besucheranzahl, die Absprungrate und woher der Besucher kommt dem Webmaster zur Verfügung zu stellen. Here you find a complete list of all Incoterms. In the Incoterms® rules 2020 update, the minimum level of insurance under CIP was increased.
It places the obligation on the seller to organize the movement of the cargo to the named destination. As the Incoterm CIF may only be used for waterway transport, this destination must be a destination accessible through waterways and may not include a land-locked destination. On the other hand, when shipping CIF, the sellers or suppliers get to determine all of those things, though they also assume the cost of shipping and insurance, which are included in the purchase price of the goods under a CIF agreement³.
Movinga in der Strategieberatung und im IT-Sektor gearbeitet. In this article, we will discuss the CIF Incoterm which is one of the 11 Incoterms® 2010 rules. Emburse has integrated the TransferWise API to make submitting, paying, and tracking international expenses easy, fast, and cost-effective. Everything you need to know about Incoterms FAS® for sea and waterway transport, one of 11 ICC rules used in international shipping.