CIF Destination Law and Legal Definition
CIF destination refers to a contractual term denoting the cost of the goods. CIF destination provides that the price should be in a lump sum. CIF destination also includes the cost of insurance and freight to the named destination. It is also known as CIF place of destination. It is considered as an alternative to Freight On Board shipment (FOB). In S.C. Johnson & Son, Inc. v. DowBrands, Inc., 294 F. Supp. 2d 568, 571 (D. Del. 2003), it was held that, with a CIF destination shipment, ownership is retained and freight is paid upon arrival at the port of destination.
The following are the duties of a seller under a C.I.F. destination contract:
1.The seller must put the goods into the possession of a carrier at the port of shipment and obtain a bill of lading,
2.The seller must load the goods and obtain a receipt from the carrier showing that the freight has been paid,
3.The seller must obtain a policy of insurance covering the goods while in transit,
4.The seller must prepare an invoice of the goods and procure any other documents required to offset shipment or comply with the contract, and
5.The seller must forward and tender with commercial promptness all the documents in due form and with any indorsement necessary to perfect the buyer's rights.
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