CIF (Cost, Insurance and Freight) contract has the following duties for exporter:
- Supply the goods in conformity with the contract sale, arrange at his on expense for the shipping space by the usual route and pay freight charges for the carriage of goods;
- Obtain at his own risk and expense all documentation regarding governmental – authorization necessary for the export of goods;
- Load the goods at his own expense on board the vessel at the port of shipment. He should procure at his own cost in a transferable form a policy of marine insurance for a value equivalent of CIF plus 10 percent; and
- Bear all risks until the goods have effectively crossed the ship’s rail and furnish to the buyer a clean negotiable Bill of Lading.
CIF contact has following duties for the importer:
- Accept the document tendered by the exporter, if these are in conformity with the contract of sale and pay the price;
- Receive the goods at the port of destination and bear all costs except freight and marine insurance incurred in respect of the carriage of the goods; and
- Bear all risks of the goods, from the time they have effectively passed the ship’s rail at the port of shipment.