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CIF = Cost, Insurance & Freight
The seller choose the ship, pays for freight until the agreed port & provides marine insurance against loss of damage to the goods during tansit. The insurance policy or any other proof of guarantee drawn up with an insurer will be transmitted to the party designated in the contract. It is the seller who pays the premium, but the goods travel at the buyer's risk. The place of risk transfer is the ship's rail at the port. Loading the ship and the outwards customs clearance are at the seller's expense.
The seller underwrites a transport insutance policy on the buyer's behalf. But the latter often is unaware of the conditions, the level of value, the journey and with whom the insurance has been taken out! In addition, doess the insured value include an expected profit, the entry fees, the possible unloading and the forwarding costs? Does the insurance cover the goods until the unloading port's depot or until the final destination? The buyer must therefore consult the seller to check all the insurance conditions!