Incoterm: Cost, Insurance and Freight

CIR Transport Risk Transport Insurance

Exactly the same as CFR, except that the seller also has to take out and pay the insurance. Terminal Handling Charges (THC) are fees charged by the terminal operator. These costs may or may not be included by the carrier in their freight rates - the buyer should inquire if the CIF price includes THC, to avoid surprises. CIF is a maritime ICC Incoterms® 2020 condition and may be less suitable for container transport.

The seller must deliver the goods on board the ship mentioned by the buyer at the agreed shipping port.

Transport risk
The risk of damage during transport is in principle from the placing of the goods on board in the shipping port on behalf of the buyer. Before delivery, the seller is at risk.

Transport costs
The cost of transport to the agreed destination port is borne by the seller. Further transport is at the expense of the buyer.

Customs formalities
The seller must provide the customs formalities resulting from the export. His account is also the associated costs, duties and charges. For the account and risk of the purchaser, all customs formalities and the associated costs, duties and charges resulting from imports into the country of destination shall be accounted for.

Transport insurance
The seller concludes an insurance contract for the buyer from the port of shipment to at least the port of destination. The insurance must meet the requirements of the Institute Cargo Clauses (C).

Addition place of delivery
The delivery condition should always be added where the transfer of the goods takes place. At CIF, this is indicated with: ... named port of destination (... agreed destination port).