What does CIF delivery mean, as it means
CIF-the transcription of “cost, insurance and cargo” called Destination Port translates to “cost, insurance and loading of” Destination Port-specific means that the seller has completed delivery when the goods he cared for were transported to the ship at the port of shipment and delivered to a ship chartered by the seller at the port of destination.
CIF risk and liability sharing
According to the CIF delivery basis, the buyer assumes all risks of loss or damage of the goods, as well as other costs, after placing the goods on the ship at the port of dispatch, and not when the goods reach their destination. The CIF term contains two critical points since the risk and cost are transferred to two different points: the risk at the shipping port and the cost at the unloading port.
CIF price, payment terms, and transfer of ownership
The CIF price means that the contract price (invoice or customs) of the goods includes the amount of the value of the goods, customs clearance of export of goods with payment of export duties and other taxes, the cost of shipping (transportation) to the port of destination (without unloading at the port), and the cost of insurance of the goods in favor of the buyer.
The terms of delivery of CIF Incoterms do not specify the price of the goods and the method of payment, do not regulate the transfer of ownership of the goods, or the consequences of violation of the contract. The price and transfer of ownership must be specified in the terms of the contract of sale. The trade term CIF indicates which of the two parties to the contract of sale must perform the necessary actions for transportation, insurance, and customs clearance, when and where the seller transfers the goods to the buyer, and what costs are borne by each party.