CIF

"Cost Insurance and Freight". In this transaction, the price of the goods includes the usual freight from the port of shipment to the agreed port of destination and the agreed insurance premium. Therefore, in addition to the same obligations as CFR, the seller must also arrange for freight insurance for the buyer and pay the insurance premium. According to general international trade practices, the insurance amount purchased by the seller should be 10% of the CIF price. If the buyer and seller do not agree on a specific insurance type, the seller only needs to obtain the minimum insurance type. If the buyer requires war insurance, the seller should provide it on the premise that the insurance premium is borne by the buyer. When the seller purchases insurance, if possible, it must be insured in the contract currency.