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BANK
PROCEDURES
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CIF - COST INSURANCE AND FREIGHT
Cost, Insurance and Freight Procedures must be followed. View CIF
information and procedures below, or you may view our Shipping Procedures
in Acrobat Reader.
"Cost, Insurance and Freight" means
that the seller has the same obligations as under CFR but with the addition
that he has to procure marine insurance against
the buyer's risk of loss of or damage to the goods during the carriage. The
seller contracts for insurance and pays the insurance
premium. The buyer should note
that under the CIF term the seller is only required to obtain insurance on
minimum coverage. The CIF term requires the seller
to clear the goods for export. This
term can only be used for sea and inland waterway transport. When the ship's
rail serves no practical purposes such as in the case of roll-on/roll-off
or container traffic, the CIP term is more appropriate
to use.
SECTION
A:
THE SELLER MUST
A1. Provision of goods in conformity with the contract Provide the goods
and the commercial invoice, or its equivalent electronic message, in
conformity with the contract of sale and any other evidence of conformity
which may be required by the contract.
A2.
Licenses, authorizations and formalities necessary
for the exportation of the goods.
A3.
Contract of carriage and insurance
a) Contract
of carriage
Contract on usual terms at his own expense for the carriage of the goods
to the named port of destination by the usual route in a seagoing vessel
(or inland waterway vessel as appropriate) of the type normally used
for the transport of goods of the contract description.
b) Contract
of insurance
Obtain at his own expense cargo insurance as agreed in the contract,
that the buyer, or any other person having an insurable interest in the
goods, shall be entitled to claim directly from the insurer and provide
the buyer with the insurance policy or other evidence of insurance cover.
The insurance shall be contracted with underwriters or an insurance company
of good repute and, failing express agreement to the contrary, be in
accordance with minimum cover of the Institute Cargo Clauses (Institute
of London Underwriters) or any similar set of clauses. The duration of
insurance cover shall be in accordance with B.5. and B.4. When required
by the buyer, the seller shall provide at the buyer's expense war, strikes,
riots and civil commotion risk insurance if procurable. The minimum insurance
shall cover the price provided in the contract plus ten percent (i.e.
110%) and shall be provided in the currency of the contract.
A4.
Delivery
Deliver the goods on board the vessel at the port of shipment on the
date ore within the period stipulated.
A5.
Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage
to the goods until such time as they have passed the ship's rail at the
port of shipment.
A6.
Division of costs
Subject to the provisions of B.6. ˇ Pay all costs relating to the good
until they have been delivered in accordance with A.4. as well as the
freight and all other costs resulting from A.3., including costs of loading
the goods on board and any charges for unloading at the port of discharge
which may be levied by regular shipping lines when contracting for carriage; ˇ Pay
the costs of customs formalities necessary for exportation as well as
all duties, taxes and other official charges payable upon exportation.
A7.
Notice to the buyer
Give the buyer sufficient notice that the goods have been delivered on
board the vessel as well as any other notice required in order to allow
the buyer to take measures which are normally necessary to enable him
to take the goods.
A8.
Proof of delivery, transport document or equivalent
electronic message Unless otherwise agreed,
at his own expense provide the buyer without
delay with the usual transport document for
the agreed port of destination.
This document (for example, negotiable bill of lading, a nonnegotiable
sea waybill or an inland waterway document) must cover the contract goods,
be dated within the period agreed for shipment, enable the buyer to claim
the goods from the carrier at destination and, unless otherwise agreed,
enable the buyer to sell the goods in transit by the transfer of the
transfer of the document to a subsequent buyer (the negotiable bill of
lading) or by notification to the carrier. |
When such a transport document is issued in several
originals, a full set of originals must be presented
to the buyer. If the transport document contains
a reference to a charter party, the seller must
also provide a copy of this latter document.
Where the seller and the buyer have agreed to communicate electronically,
the document referred to in the preceding paragraphs may be replaced
by an equivalent electronic data interchange (EDI) message.
A9.
Checking - packaging - marking
Pay the costs of those checking operations (such as checking quality,
measuring, weighing, counting) which are necessary for the purpose of
delivering the goods in accordance with A.4. Provide at his own expense
packaging (unless it is usual for the particular trade to ship the goods
of the contract description unpacked) which is required for the transport
of the goods arranged by him. Packaging is to be marked appropriately.
A10.
Other obligations
Render the buyer at the latter's request, risk and expense, every assistance
in obtaining any documents or equivalent electronic messages (other than
those mentioned in A.8.) issued or transmitted in the country of shipment
and/or of origin which the buyer may require for the importation of the
goods and, where necessary, for their transit through another country.
SECTION
B:
THE BUYER MUST
B1. Payment of the Price
Pay the price as provided in the contract of sale.
B2. Licenses, authorizations and formalities.
Obtain at his own risk and expense any import license or other official
authorization and carry out all customs formalities for the importation
of the goods and, where necessary, for their transit through another
country.
B3. Contract of carriage
No obligation
B4. Taking delivery
Accept delivery of the goods when they have been delivered in accordance
with A.4. and receive them from the carrier at the named port of destination.
B5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have
passed the ship's rail at the port of shipment.
Should he fail to give notice in accordance with B.7., bear all risks
of loss of or damage to the goods from the agreed date or the expiry
date of the period fixed for shipment provided, however, that the goods
have been duly appropriated to the contract, that is to say, clearly
set aside or otherwise identified as the contract goods.
B6. Division of costs
Subject to the provisions of A.3., pay all costs relating to the goods
from the time they have been delivered in accordance with A.4. and, unless
such costs and charges have been levied by regular shipping lines when
contracting for carriage, pay all costs and charges relating to the goods
whilst in transit until their arrival at the port of destination, as
well as unloading costs including lighterage and wharfage charges.
Should he fail to give notice in accordance with b.7. pay the additional
costs thereby incurred for the goods from the agreed date or the expiry
date of the period fixed for shipment provided, however, that the goods
have been duly appropriated to the contract, that is to say, clearly
set aside or otherwise identified as the contract goods.
Pay all duties, taxes and other official charges as well as the costs
of carrying out customs formalities payable upon importation of the goods
and, where necessary, for their transit through another country.
B7. Notice to the seller
Whenever he is entitled to determine the time for shipping the goods
and/or the port of destination, give the seller sufficient notice thereof.
B8. Proof of delivery, transport document
or equivalent electronic message
Accept the transport document in accordance with A.8. if it is in conformity
with the contract.
B9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except
when mandated by the authorities of the country of exportation.
B10. Other obligations
Pay all cost and charges incurred in obtaining the documents or equivalent
electronic messages mentioned in A.10. and reimburse those incurred by
the seller in rendering his assistance in accordance therewith.
Provide the seller, upon request, with the necessary information for
procuring insurance.
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