(1) The term C.I.F. means that the price includes in a lump
sum the cost of the goods and the insurance and freight to the named
destination. The term C. & F. or C.F. means that the price so
includes cost and freight to the named destination.
   (2) Unless otherwise agreed and even though used only in
connection with the stated price and destination, the term C.I.F.
destination or its equivalent requires the seller at his own expense
and risk to
   (a) Put the goods into the possession of a carrier at the port for
shipment and obtain a negotiable bill or bills of lading covering
the entire transportation to the named destination; and
   (b) Load the goods and obtain a receipt from the carrier (which
may be contained in the bill of lading) showing that the freight has
been paid or provided for; and
   (c) Obtain a policy or certificate of insurance, including any war
risk insurance, of a kind and on terms then current at the port of
shipment in the usual amount, in the currency of the contract, shown
to cover the same goods covered by the bill of lading and providing
for payment of loss to the order of the buyer or for the account of
whom it may concern; but the seller may add to the price the amount
of the premium for any such war risk insurance; and
   (d) Prepare an invoice of the goods and procure any other
documents required to effect shipment or to comply with the contract;
and
   (e) Forward and tender with commercial promptness all the
documents in due form and with any indorsement necessary to perfect
the buyer's rights.
   (3) Unless otherwise agreed the term C. & F. or its equivalent has
the same effect and imposes upon the seller the same obligations and
risks as a C.I.F. term except the obligation as to insurance.
   (4) Under the term C.I.F. or C. & F. unless otherwise agreed the
buyer must make payment against tender of the required documents and
the seller may not tender nor the buyer demand delivery of the goods
in substitution for the documents.

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Last modified: July 31, 2008