Which party generally assumes responsibility for the costs of delivery in a CIF contract?

In a CIF (Cost, Insurance, and Freight) contract, the seller bears the responsibility for the costs of delivery. This includes not only the freight charges to transport the goods to the buyer’s designated port but also the cost of marine insurance, ensuring that the goods are protected during transit.

Under CIF terms, the seller is obligated to arrange for and pay for the transportation and insurance of the goods until they reach the destination port. This means that the seller must provide the buyer with the necessary documents that prove that the goods have been insured and are on the way. As a result, the financial burden associated with delivery falls on the seller, making it their responsibility to handle these logistics and expenses until the goods reach the specified location.

In this type of contract, once the goods arrive at the buyer's port, the responsibility for additional costs and risks often shifts to the buyer. However, during the shipping process, the seller’s obligations clearly include covering the costs of delivery, which is the key characteristic that defines a CIF contract. This understanding of responsibility is fundamental to parties involved in international trade and shipping.