2. The seller – will take place in a ship in the port of dispatch and communicate the name of the ship and its expected date of arrival in a port in India. Fees, Insurance and Freight (CIF) are fees paid by a seller to cover the costs, insurance and freight of a buyer`s order during transport. The goods are exported to a port specified in the purchase contract. Until the goods are fully loaded onto a transport vessel, seller will bear the cost of loss or damage to the Product. If the product requires additional duties, export documents, or inspections or diversions, the seller must bear these costs. Once the cargo is loaded, the buyer bears all other costs. The CIF is similar, but not the same as transport and insurance (CIP). 11. The seller submits the contract at his own expense for the transport of the goods to the port of destination, by the usual route on a seagoing ship for the transport of these goods.
14. The seller must provide sufficient information indicating that the goods have been delivered on board the ship, as well as any other communication necessary for the buyer to take the necessary measures not to allow it to receive delivery of the goods. According to the terms of the purchase contract, as soon as the goods change hands, the buyer must pay the agreed price and must now cover all additional costs of transport, inspection and licensing. Other typical expenses include duties, taxes, and shipping the goods to their final location. 15. The Buyer shall bear all costs related to the Goods from the time they are delivered to the Ship and shall bear all costs and charges related to the Goods during carriage until their arrival, as well as other charges and duties and taxes payable at the port of unloading. 8. If the goods are not shipped by the seller within the aforementioned shipping period, the buyer has the choice to revoke this contract or extend the period. If the contract is not terminated within two weeks of the last date of shipment, the buyer is deemed to accept an extension of a reasonable shipping time. CIF is one of the international trade terms known as Incoterms. Incoterms are common trade rules developed by the International Chamber of Commerce (ICC) in 1936.
The ICC established these conditions to govern shipping policies and the responsibilities of buyers and sellers engaged in international trade. Incoterms are often similar to national terms (such as the U.S. Uniform Commercial Code), but are applicable internationally. For example, parties to a contract must indicate the location of the applicable law for their terms. The ICC restricts the use of the CIF for goods transported to those moving by inland waterways or sea. 13. The seller is liable for the entire risk of loss of damage to the goods until they have passed the shipping lane at the said port of dispatch. The seller will also bear the risks for the goods until they have been delivered as indicated above, including the cost of loading the goods onto the ship and the costs of unloading at the port of unloading which may be charged by the transport company when the transport is put into operation, and will also pay all customs duties for export, and all customs duties and other government fees payable on export. This Agreement is signed at the address. the. Day of.
between M/s. A B & Co. Ltd., a company registered under the Companies Act and having its registered office in. London. hereinafter referred to as the “seller” of a party and M/s. X Y & Co. Ltd., a company registered under the (Indian) Companies Act, 1956. and based in. hereinafter referred to as “the Buyer” of the other Party; CIF`s terms and conditions define when the Seller`s liability ends and the Buyer`s liability begins. The CIF is a traditional method of shipping goods for importers. This is similar to free shipping on board, with the main difference being which party is responsible for the cost until the product is loaded onto the shipping ship.
As a general rule, exporters who have direct access to vessels use the CIF. In accordance with the CIF Conditions, the Seller is responsible for certain protective measures for an order. Seller responsibilities include: Consider this hypothetical example: Best Buy orders 100 containers of flat-screen TVs from Sony with CIF in Kobe, a Japanese port. Sony delivers the command to the port and charges it on the Yantian Express. Once the loading is complete, Best Buy is responsible for all costs associated with transporting the ordered goods to their final destination. When the container ship is on its way, a fire breaks out in one of the bunkers. The Best Buy TV order receives water damage during firefighting. Since the company used CIF shipping, Best Buy is responsible for ensuring that the product is protected from damage during the trip and covers the cost of damaged goods. 9. It is the responsibility of the buyer to obtain a licence to import the goods into his country and to pay all customs duties, import duties and other handling charges for the release of the goods from the ship and the transport to its factory or godown. 10.
Likewise, it is the responsibility of the seller to issue an export license if required by the law of his country and to pay all costs for the transport and shipment of such goods. 6. The aforementioned documents, duly approved for the benefit of the Buyer, will be given to the Buyer`s bankers when the letter of credit is redeemed and the Buyer will receive them from its bankers so that the Buyer can clear the goods at the port of arrival. Such delivery of documents will be considered as a delivery of the goods to the Buyer and thereafter the goods will be at the Risk of the Buyer. The CIF is different from the provision for costs and freight (CRF), where sellers are not required to insure goods in transit. 5. The seller sends the goods to the ship and sends the documents belonging to these goods, namely the compensation contract, the insurance policy, the invoice. Bills of lading, etc. to its bankers at the port of arrival. 1. The seller undertakes to sell to the buyer and the buyer undertakes to buy synthetic rubber from the seller. Tonnes.
Quantity at the price of. Pound sterling per tonne (hereinafter referred to as “Goods”) CIF for shipments from December to January. 3. The seller shall conclude a contract with the shipowner for the carriage and delivery of the said goods in the port of. in India. The buyer must also take out an insurance policy for the value of the said goods under the conditions in force and issue an invoice. .