-Refers to a type of agreement for the purchase and shipping of goods internationally
-deal with the documentation required for global trade,which parties are responsible for which document.
-determining the paperwork required to move a shipment is an important job, since requirement vary so much between countries
• Delivery Terms/Inco-term
CIF: Cost, Insurance and Freight
The seller, or exporter, is responsible for delivering the goods onto the vessel of transport and clearing customs in the country of export. The exporter also is responsible for purchasing insurance, with the buyer (importer) named as the beneficiary.
Risk of loss transfers to buyer as the goods cross the ship's rail. If these goods are damaged or stolen during international transport, the buyer owns the goods and must file a claim based on insurance procured by the seller. The buyer must clear customs in the country of import and pay for all other transport and insurance in the country of import.
CIF can be used as an Incoterm only when the international transport of goods is at least partially by water. If FOB is the customs valuation basis, the international insurance and freight costs must be deducted from the CIF price. A CIF transaction will read CIF, port of destination.