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What is covered by the insurance that the seller bought? I assumed it was to cover any damages during shipping to Rotterdam - so why is the risk of loss or damaged goods on the buyer? (It should be on the insurance company)
the buyer will be the beneficiary of the insurance => buyer will claim themselves with the insurance company for any loss/ damage caused on the way shipment reach port of importing
It does not make sense, if the Seller pays for cost and insurance then why would the buyer carry the cost damage of the goods, then whats the point of paying to insurance?
What happens if in practice buyer pays the costs and freight under CIF contract and goods are notice to be damaged before they are loaded into the vessel?
let's me put clear in a sense that you can easily understand the concept the contract of CIF embodies three contracts such as contract of sale,contract of insurance,and contract of carriage.Therefore ,the seller has an obligation to make sure that goods are secured and reach to the port of destination after the discharge the seller is required to deliver all necessary documents relating to goods and if good are damaged the seller is liable in a sense that he has breached the contract but this kind of contract has been mistakenly regarded as not a contract of sale of goods but rather of the document relating to goods i kindly request to read a case of ARNOID KARBEIG AND COMPANY in this case you will get alot of CIF thank you
@@josephemanuel4622 wrong! CIF involves the contract of sale between the seller and buyer. The seller enters into separate ancillary contracts for freight and insurance to which the buyer is not a party. It is entirely irrelevant to quote a legal case that predates the very first Incoterms rules of 1936. If the buyer, its agent or the vessel's master determined the goods to be faulty then they cannot be loaded, meaning the seller has not yet delivered, the seller bears any risks and costs and may well be in breach of contract.
@@bobr6555 CIF says the seller is responsible for all papers of export - ALL PAPERS, taxes, documents, licenses concerning the par of exportation, so all regulations inside the seller's country are on the charge of the exporter - that's exactly what CIF incoterms is about! Oh, God! And the importer will be responsible for every license asked in his own country only (country of destination)! All duties, etc. I looked for your account on RUclips (Bob) and you have absolutely nothing there. Are you sure you are here to help?
By the port of origin, CIF means all, I said ALL, the costs and documents concerning the exportation are responsibilities of the seller/exporter/trader. On the other hand, after goods are delivered to the port of destination, all costs, licenses, duties including the new insurance since this point are the responsibility of the importer.
i didnt get why correct is point A. as per ICC ..The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
Pls correct me if I’m wrong, the cargo from port will be loaded successful and passed to the rail way of the ship, therefore, it is the responsibility who hires the ship
@@wiglanzdelacruz4890 its all depend on your contract with shipper. if its on local business than u can use term FOR and as per that shipper will be responsible to hand over products to you at your doorstep
Hi, You mean In CIF , Seller arranges the freight forwarder in his country, pay for freight and Insurance but what if buyer wishes to have his freight forwarder at his country for clearance.is it possible for him to do that as per the giudelines
Hi. I think that depends on negotiation between the Seller and the Buyer. I don't get your idea. "what if buyer wishes to have his freight forwarder at his country for clearance" Do you mean the clearance in Buyer's country? If so, it is certainly the Buyer takes that task. If you mean the Clearance in Seller's country, I think it should be FOB or FCA.
@@ngocanh6768 there is no freight forwarder involved in CIF, it is for bulk and break-bulk only where the seller loads the vessel. CIF is not for FCL or LCL, use CIP instead.
Oh Gosh! The girl gave a wrong response - I suppose it was involuntary - and 4 guys here discussing her accent. International trade is really quite well advised! By the way, I have another accent too: I'm brazilian.
@@bobr6555 I beg your pardon! If the risks are for the buyer, why should the seller call and pay for the insurance on behalf of the buyer??? We may say it that this is a basic insurance, we may say the importer should care if would happen another transshipment by force majeure (let´s suppose de engine of the vessel brakes and have to change of vessel at other port meanwhile) the buyer should have let agreed with the seller, in advance, more comprehensive insurance for this CIF incoterms that the responsibility should reach until the final port of Rotterdam. But, it is still the responsibility of the seller to deal with the insurance's contract. And the goods must be delivered to the final port of destination, so that's why it is called CIF Cost Insurance & Freight. Please, tell me I'm wrong - you, Bob, and Mr. Billy Fong Goon Poy!!
@@evaristoborgesjr1 firstly, have you actually read the Incoterms 2010 (and now 2020) book? Do not rely on RUclips videos as your only source of information, even though I believe Mr Billy Fong Goon Poy is very knowledgable on this topic. If I recall correctly he was investigating how to become an ICC-accredited Incoterms 2020 trainer, which involves passing an exam of which I was one of the two authors. Secondly, if "transhipment" occurs because the cargo transfers to another vessel due to vessel malfunction, that is not a reason to claim for damage of the goods. Cargo insurance covers loss or damage to the goods, not delay. Thirdly, in CIF delivery occurs once the goods are on board the vessel contracted by the buyer. At that point risk transfers to the buyer and the buyer therefore has the insurable interest. However, it has been traditional for well over as hundred years that if the seller and buyer agree, especially if the seller is in a country with better insurance services, the seller obtains cargo insurance in its own name and allows the buyer the ability to claim against that insurance by way of an endorsement on the certificate or policy. Fourthly, the CIF rule only requires Institute Cargo Clauses (C) as the default. The seller and buyer are free to agree for greater coverage. Even Institute Cargo Clauses (A) does not cover delay. Fifthly, if you are thinking FCL or LCL, CIF is not the appropriate rule to use, you should be using CIP. Please obtain and read the Incoterms 2020 book from the ICC. Also you can join the Incoterms group on LinkedIn.
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So much more useful than my lecturer... Thanks!
Love tour videos. It is rare to come across so high value content on yt. Thank you for maling ot awailable
Ok, paused at 2:52, so, let's see: 1st question Point B; 2nd question: The seller. Congrats from Brazil!
I beg your pardon??????????????????
Incoterm 2020 will be released soon, so can you update and give more details about it to us?
thanks for providing this info about the coming Incoterms
Very useful ,need all other incoterm rules
this video actually really helped me thx alot
thanks for your comment
What is covered by the insurance that the seller bought? I assumed it was to cover any damages during shipping to Rotterdam - so why is the risk of loss or damaged goods on the buyer? (It should be on the insurance company)
the buyer will be the beneficiary of the insurance => buyer will claim themselves with the insurance company for any loss/ damage caused on the way shipment reach port of importing
Can you please do a online course on import export agency send me the link many thanks
It does not make sense, if the Seller pays for cost and insurance then why would the buyer carry the cost damage of the goods, then whats the point of paying to insurance?
You are the best person. Thank you.
Can someone answer why Point A and Buyer are correct answers? I'm confusing CIF and FOB after this video.
Because seller,s have already delivered the good up to port...... in FOB SELLER RESPONSIBILITY IS UPTO WAREHOUSES....
@@abdulsameed1721 No!!!! FOB's delivery point is identical to that for CIF. Please read the Incoterms 2020 book.
Best and safest payment terms for agent
Please can you give me input on this as a solid agency agreement may not be enough
At which point does the buyer record the purchase in their books?
If it says CIF- Los Angeles, USA what does it mean?
What happens if in practice buyer pays the costs and freight under CIF contract and goods are notice to be damaged before they are loaded into the vessel?
let's me put clear in a sense that you can easily understand the concept the contract of CIF embodies three contracts such as contract of sale,contract of insurance,and contract of carriage.Therefore ,the seller has an obligation to make sure that goods are secured and reach to the port of destination after the discharge the seller is required to deliver all necessary documents relating to goods and if good are damaged the seller is liable in a sense that he has breached the contract
but this kind of contract has been mistakenly regarded as not a contract of sale of goods but rather of the document relating to goods
i kindly request to read a case of ARNOID KARBEIG AND COMPANY in this case you will get alot of CIF thank you
This would have been picked up by the Buyers inspection agent... the buyer has every right to reject before loading
@@josephemanuel4622 wrong! CIF involves the contract of sale between the seller and buyer. The seller enters into separate ancillary contracts for freight and insurance to which the buyer is not a party. It is entirely irrelevant to quote a legal case that predates the very first Incoterms rules of 1936. If the buyer, its agent or the vessel's master determined the goods to be faulty then they cannot be loaded, meaning the seller has not yet delivered, the seller bears any risks and costs and may well be in breach of contract.
Thank you ! as usual i like it!
thanks for your comment
Hello! Excuse me.
With CIF shipping terms, which party is responsible for transit port storage and handling fees?
Thank you 😊
If these charges are not included in the contract of carriage taken out by the seller, in other words, unforeseen at that time, then buyer pays.
In cif who pay custom duty ??? Seller or buyer??
@@bobr6555 CIF says the seller is responsible for all papers of export - ALL PAPERS, taxes, documents, licenses concerning the par of exportation, so all regulations inside the seller's country are on the charge of the exporter - that's exactly what CIF incoterms is about! Oh, God! And the importer will be responsible for every license asked in his own country only (country of destination)! All duties, etc. I looked for your account on RUclips (Bob) and you have absolutely nothing there. Are you sure you are here to help?
By the port of origin, CIF means all, I said ALL, the costs and documents concerning the exportation are responsibilities of the seller/exporter/trader. On the other hand, after goods are delivered to the port of destination, all costs, licenses, duties including the new insurance since this point are the responsibility of the importer.
@@bobr6555 It is not a matter of choice! Not for the seller, neither for the buyer! It's a regulation!
is there any good website to get information about CDCS?? i am interesting in study CDCS but i do not know how to get information about it:(
1. Point B
2. Insurance Co.
Insurance Co. will only accept valid reason so the answer is it depends on the cause of damage and where did the damage happen.
1. Point B
2. The forwarder
Is the cost of product included in CIF?
Yes
Thank you
thank you mam
Thank you
Thx, good info ...
thanks for your comment
Please upload CISG Related video
i didnt get why correct is point A. as per ICC ..The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
Because the point of delivery is when the goods are on board the vessel at the port of loading, at that point risk transfers.
Pls correct me if I’m wrong, the cargo from port will be loaded successful and passed to the rail way of the ship, therefore, it is the responsibility who hires the ship
@@wiglanzdelacruz4890 its all depend on your contract with shipper. if its on local business than u can use term FOR and as per that shipper will be responsible to hand over products to you at your doorstep
Well, 1) Point B Rotterdam. 2) The Sellers Insurance company.
1 point B and seller is responsible for the damage
1. point B
2. seller
Aftet 3 years, my answers should be 1, Rotterdam and 2,Seller
at point A
B and Seller
1.A
2.Buyer
Ahmed 3bas 😉
Best regards
1. Rotterdam, 2. RoL to S.
Given information of CIF terms are wrong in this video.
1st answer should be Buyer and
2nd answer should be the seller.
Answers
1. B
2. Seller
B
1) Point B
2) Sellers is responsible for damaged goods
thanks for putting your answer in the comment section
Hi,
You mean In CIF , Seller arranges the freight forwarder in his country, pay for freight and Insurance but what if buyer wishes to have his freight forwarder at his country for clearance.is it possible for him to do that as per the giudelines
Hi. I think that depends on negotiation between the Seller and the Buyer. I don't get your idea. "what if buyer wishes to have his freight forwarder at his country for clearance" Do you mean the clearance in Buyer's country? If so, it is certainly the Buyer takes that task. If you mean the Clearance in Seller's country, I think it should be FOB or FCA.
@@ngocanh6768 there is no freight forwarder involved in CIF, it is for bulk and break-bulk only where the seller loads the vessel. CIF is not for FCL or LCL, use CIP instead.
seller
answer 1: point of delivery is B
Answer 2: insurance company nominated by A
What's wrong with her accent ?!)
Vasya Rizov 😉
i'm from malaysia - hence have malaysian accent lol
Nothing is ever "wrong" with an accent.
Start travelling and you will learn that everyone on earth including YOU has an accent. We focus on the message a person deliver. Thanks
Oh Gosh! The girl gave a wrong response - I suppose it was involuntary - and 4 guys here discussing her accent. International trade is really quite well advised! By the way, I have another accent too: I'm brazilian.
1) Point B
2) Sellers is responsible for damaged goods.
No, buyer bears the risk, seller takes out insurance for the buyer's risk and hands them the documentary means to make a claim.
@@bobr6555 I beg your pardon! If the risks are for the buyer, why should the seller call and pay for the insurance on behalf of the buyer??? We may say it that this is a basic insurance, we may say the importer should care if would happen another transshipment by force majeure (let´s suppose de engine of the vessel brakes and have to change of vessel at other port meanwhile) the buyer should have let agreed with the seller, in advance, more comprehensive insurance for this CIF incoterms that the responsibility should reach until the final port of Rotterdam. But, it is still the responsibility of the seller to deal with the insurance's contract. And the goods must be delivered to the final port of destination, so that's why it is called CIF Cost Insurance & Freight. Please, tell me I'm wrong - you, Bob, and Mr. Billy Fong Goon Poy!!
@@evaristoborgesjr1 firstly, have you actually read the Incoterms 2010 (and now 2020) book? Do not rely on RUclips videos as your only source of information, even though I believe Mr Billy Fong Goon Poy is very knowledgable on this topic. If I recall correctly he was investigating how to become an ICC-accredited Incoterms 2020 trainer, which involves passing an exam of which I was one of the two authors.
Secondly, if "transhipment" occurs because the cargo transfers to another vessel due to vessel malfunction, that is not a reason to claim for damage of the goods. Cargo insurance covers loss or damage to the goods, not delay.
Thirdly, in CIF delivery occurs once the goods are on board the vessel contracted by the buyer. At that point risk transfers to the buyer and the buyer therefore has the insurable interest. However, it has been traditional for well over as hundred years that if the seller and buyer agree, especially if the seller is in a country with better insurance services, the seller obtains cargo insurance in its own name and allows the buyer the ability to claim against that insurance by way of an endorsement on the certificate or policy.
Fourthly, the CIF rule only requires Institute Cargo Clauses (C) as the default. The seller and buyer are free to agree for greater coverage. Even Institute Cargo Clauses (A) does not cover delay.
Fifthly, if you are thinking FCL or LCL, CIF is not the appropriate rule to use, you should be using CIP.
Please obtain and read the Incoterms 2020 book from the ICC. Also you can join the Incoterms group on LinkedIn.