A document requiring an expert`s statement that the goods are in compliance with the specifications of the contract is referred to as the certificate of ` According to all rules, the seller must bear the costs of all control operations necessary for the delivery of goods, such as quality control, measurement of goods and/or packaging, weighing, counting of goods and/or packaging. FOB is for Free On Board. With the fob type of the shipping contract, the seller or shipper ensures that the goods are transported to a specific place of origin. This is normally a port, since INCOTERM`s FOB and other contracts are primarily for shipping. The seller must agree to an insurance contract at his own expense in order to cover the buyer`s risks. This insurance coverage must correspond to the level provided by the freight clauses of the LMA/IUA Institute Cargo (C) or similar clauses in other insurance plans. This type of coverage is the minimum available only for defined risks. Anything that is not defined is not covered. Under all the rules, the seller bears all the risk of loss or deterioration of the goods until its delivery in accordance with the A2s described above.
The exception is a loss or injury in the circumstances described in point B3 below, which varies depending on the buyer`s role in B2 Incoterms 2020, which requires that the Incoterm CIF, or “costs, insurance and freight,” be exclusively intended for shipping. According to CIF, the seller is responsible for the costs and freight of the delivery of the goods to the destination indicated by the buyer. The CAF risk transfer is carried out when the goods are shipped on the ship and are recommended for situations where the seller can access the vessel directly, for example. B for bulk navigation. The CIF is therefore unsuitable for container cargo. The difference between CIF and CFR is that the seller is required to take out insurance for this risk and to present the buyer with a document allowing the buyer to make claims against that insurance. This is usually an original insurance policy that specifically covers this transaction or a certificate issued by the insurer under the seller`s existing open marine policy.