In CIF terms, who pays for freight and insurance?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the Shipping Business Test. Access a variety of questions and learn with detailed explanations tailored for each concept. Enhance your knowledge and increase your confidence for the exam!

Multiple Choice

In CIF terms, who pays for freight and insurance?

Explanation:
In CIF terms, the seller covers the costs to bring the goods to the named port of destination, which includes paying for freight and arranging marine insurance. The risk transfers from seller to buyer when the goods are loaded on the vessel, but the insurance and freight obligations are already handled by the seller. So, the seller pays both freight and insurance. The buyer then takes on costs only after the goods reach the destination and are ready for import and onward transport.

In CIF terms, the seller covers the costs to bring the goods to the named port of destination, which includes paying for freight and arranging marine insurance. The risk transfers from seller to buyer when the goods are loaded on the vessel, but the insurance and freight obligations are already handled by the seller. So, the seller pays both freight and insurance. The buyer then takes on costs only after the goods reach the destination and are ready for import and onward transport.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy