Understanding the Correct Point of Delivery in CIF Incoterms

When a seller and a buyer enters into a sales contract, they would need to specify a lot of details eg method of payment, what are the goods (quantity and quality), delivery dates, documents required etc
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INCOTERMS

There are 11 Incoterm rules in the current Incoterms 2010 published by the International Chamber of Commerce. They are: EXW, FOB, FAS, FCA, CFR, CIF, CPT, CIP, DAT,DAP,DDP.

The Incoterm rules describe mainly the tasks, costs and risks involved in the delivery of goods from the sellers to buyers.

Under CIF which belongs to Incoterms Group C – Main Carriage Paid, the seller nominates the vessel and pays the cost and freight to bring the goods right to Port of Destination. The seller also arrange for insurance cover.

In this video we look at two key questions which is

1. At what point can we say that the Seller has delivered the goods to the Buyer
2. If the goods are damaged along the way, who bears the risk of loss or damage to the goods?

Under Guidance Note of Incoterms 2010 Rules published by ICC, you will find that ICC define delivery of CIF as follows:

Cost, Insurance and Freight means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risks of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
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This video was produced by
1. Mr. Billy Fong Goon Poy, ACIB, MITD, Master Trainer
2. Ms Sook Ling, Online Content Creator

Tradelinks Resources conducts public training programs for the following International Trade courses in Malaysia
1. Incoterms 2010
2. Letters of Credit
3. Bills of Lading - Correct Preparation To Avoid Rejection by Banks

[TradelinksResources]

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[osraneslipy]

Love tour videos. It is rare to come across so high value content on yt. Thank you for maling ot awailable

[jasonnguyen]

So much more useful than my lecturer... Thanks!

[evaristoborgesjr]

Ok, paused at 2:52, so, let's see: 1st question Point B; 2nd question: The seller. Congrats from Brazil!

[ngoclan]

Incoterm 2020 will be released soon, so can you update and give more details about it to us?

[venkateshk]

Very useful, need all other incoterm rules

[SW-gljy]

What is covered by the insurance that the seller bought? I assumed it was to cover any damages during shipping to Rotterdam - so why is the risk of loss or damaged goods on the buyer? (It should be on the insurance company)

[maheshsharma]

Can you please do a online course on import export agency send me the link many thanks

[momoary]

It does not make sense, if the Seller pays for cost and insurance then why would the buyer carry the cost damage of the goods, then whats the point of paying to insurance?

[greenlamp]

this video actually really helped me thx alot

[rmusic]

At which point does the buyer record the purchase in their books?

[JoelVmobile]

If it says CIF- Los Angeles, USA what does it mean?

[mafens]

What happens if in practice buyer pays the costs and freight under CIF contract and goods are notice to be damaged before they are loaded into the vessel?

[umaryuldashov]

Can someone answer why Point A and Buyer are correct answers? I'm confusing CIF and FOB after this video.

[fredsanford]

Hello! Excuse me.
With CIF shipping terms, which party is responsible for transit port storage and handling fees?
Thank you 😊

[maheshsharma]

Best and safest payment terms for agent
Please can you give me input on this as a solid agency agreement may not be enough

[ttf]

is there any good website to get information about CDCS?? i am interesting in study CDCS but i do not know how to get information about it:(

[matthiasmwanza]

Is the cost of product included in CIF?

[jaffarraza]

i didnt get why correct is point A. as per ICC ..The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

[petervarga]

Well, 1) Point B Rotterdam. 2) The Sellers Insurance company.