The seller delivers when the goods pass the ship’s rail in the port of shipment. Seller must pay the cost & freight
necessary to bring goods to named port of destination. Risk of loss & damage same as CFR. Seller also has to
procure marine insurance against buyer’s risk of loss/damage during the carriage. Seller must clear the goods for
export. This term can only be used for sea transport[1]
“Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
‘The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.”[2]
Reference
[1]
[2] https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-rules-2010/
