What are the Buyers and Sellers Responsibilities under CIF Incoterms?
CIF is the shipping incoterm we use when exporting our products, it stands for Cost, Insurance and Freight. Under this incoterms, we will pay the costs and freight includes insurance to bring our products to the port of destination.
1. Export Packaging: Ensuring the cargo is adequately packaged and ready for export. In some instances, exporting countries require specific markings on their products or packaging. This party is responsible for ensuring that the cargo can be exported appropriately.
2. Loading Charges: Any costs associated with loading the shipment onto the first carrier from the sellers’ warehouse.
3. Delivery to Port/Place: All transportation costs associated with delivering the cargo from the seller’s warehouse to the port.
3. Export Duty, Taxes & Customs Clearance: Any customs costs associated with exporting the cargo. In the event of customs examinations and additional fees, the responsibility falls on this party.
4. Origin Terminal Charges: These are handing charges at the loading port.
5. Loading on Carriage: Charges associated with loading the cargo onto the vessel.
6. Carriage Charges: The cost of freight to move the shipment from the port of loading to the port of destination.
7. Insurance: Under CIF Incoterms, the seller is responsible for obtaining insurance policy on the shipment, up until the port of destination.
1. Destination Terminal Charges: Also known as Destination Handling Charges, or DTHC, these are all costs associated with unloading to transferring the cargo within the terminal.
2. Delivery to Destination: Organizing the logistics to move the cargo from the port to the final delivery destination.
3. Unloading at Destination: Once the cargo arrives at the delivery destination, any costs associated with unloading the cargo for the truck.
4. Import Duty, Taxes & Customs Clearance: All import requirements, including customs clearance, duty, and taxes. In the event of a customs examination or issue with the importation, this party is responsible for rectifying the problem.