International trade - Essay Example

In a CIF d port of destination) contract what are the Sellers and Buyers primary duties? From January the International Chamber of Commerce (ICC) published revisions to its International Commercial Terms (INCOTERMS). CIF in full is Cost Insurance and Freight (. named port of destination) and is categorised under INCOTERMS maritime terms. In the revised CIF (…named port of destination) contract the sellers and buyers primary duties are as shown below:Seller:Seller clears goods for export which means that the seller does export customs declaration.

Seller bears the costs for unloading of truck at the port of export and also costs of loading to the carrier vessel. Finally, seller pays for the costs of moving the goods to the port of destination and also buys the cargo insurance. It is important to note that the Seller fulfils its obligation to deliver when it hands the goods over to the carrier (MIQ 2011; Win Global Partners 2012).Buyer: Buyer pays for the unloading of cargo from vessel carrier and loading them onto a track at the port of import.

Buyer then does import customs clearance as well as pays import duties. Finally, buyer pays for carriage to place of destination. The important thing to note in CIF (…port of destination) is that the buyer bears all risks of loss and/or damage(ISM 2011). This means that even though seller purchases the cargo insurance, the risk transfers to the buyer when the seller hands good over to the carrier at origin (MIQ 2011). ReferencesISM, 2011. Incoterms 2010 Rules. Available at: http://www.ism.ws/files/Products/UpdatedGlossaryIncoterms.

pdf [Accessed May 11, 2012].MIQ, 2011. New INCOTERMS effective January 1, 2011. Available at: http://www2.miq.com/cms/resource_library/files/7f52c8f0b02d4aff/incoterms_2010.pdf [Accessed May 11, 2012].Win Global Partners, 2012. CIF – Cost Insurance and Freight - Incoterms 2010. Win Global Partners. Available at: http://www.winglobal.ca/cif#.T61OINnhkco [Accessed May 11, 2012].