CFR CIF

The seller The buyer The seller The buyer

BH The seller has no The buyer has no obligation Unless otherwise agreed or The buyer has no obligation to
A5-B5 obligation to the buyer to to the seller to make a customary in the particular the seller to make a contract of
make a contract of contract of insurance. trade, the seller must obtain, insurance. However, the buyer
insurance. However, the at its own cost, cargo must provide the seller, upon
seller must provide the insurance complying with the request, with any information
buyer, at the buyer’s cover provided by Clauses necessary for the seller to
request, risk and cost, with (C) of the Institute Cargo procure any additional insurance
information in the Clauses (LMA/IUA) or any requested by the buyer
possession of the seller similar clauses. The under A5.
that the buyer needs for insurance shall be contracted
obtaining insurance with underwriters or an
insurance company of good
repute and entitle the buyer,
or any other person having
an insurable interest in the
goods, to claim directly from
the insurer. When required by
the buyer, the seller must,
subject to the buyer
providing any necessary
information requested by the
seller, provide at the buyer’s
cost any additional cover, if
procurable, such as cover
complying with the Institute
War Clauses and/or Institute
Strikes Clauses (LMA/IUA) or
an similar clauses (unless
such cover is already
included with the cargo
insurance described in the
preceding paragraph). The
 insurance shall cover, at a
minimum, the price provided
in the contract plus 10% (i.e.
110%) and shall be in the
currency of the contract. The
insurance shall cover the
goods from the point of
delivery set out in A2 to at
least the named port of
destination. The seller must
provide the buyer with the
insurance policy or certificate
or any other evidence of
insurance cover. Moreover,
the seller must provide the
buyer, at the buyer’s request,
risk and cost, with
information that the buyer
needs to procure any
additional insurance.

Allocatio The seller must pay: The buyer must pay: The seller must pay: The buyer must pay:
n of a) all costs relating to the a) all costs relating to the a) all costs relating to the a) all costs relating to the goods
costs goods until they have been goods from the time they goods until they have been from the time they have been
delivered in accordance have been delivered under delivered in accordance with delivered under A2, other than
with A2, other than those A2, other than those payable A2, other than those payable those payable by the seller
payable by the buyer by the seller under A9; by the buyer under B9; under A9;
under B9;
b) the costs of transit, unless b) the freight and all other b) the costs of transit, unless
b) the freight and all other such costs were for the costs resulting from A4, such costs were for the seller’s
costs resulting from A4, seller’s account under the including the costs of loading account under the contract of
including the costs of contract of carriage; the goods on board and carriage;
loading the goods on transport-related security
board and transport- c) unloading costs including costs; c) unloading costs including
related security costs; lighterage and wharfage lighterage and wharfage
charges, unless such costs c) any charges for unloading charges, unless such costs and
 c) any charges for and charges were for the at the agreed port of charges were for the seller’s
unloading at the agreed seller’s account under the discharge that were for the account under the contract of
port of discharge that were contract of carriage; seller’s account under the carriage;
for the seller’s account contract of carriage;
under the contract d) the seller for all costs and d) the costs of any additional
of carriage; charges related to providing d) the costs of transit that insurance procured at the
assistance in obtaining were for the seller’s account buyer’s request under A5 and
d) the costs of transit that documents and information under the contract of B5;
were for the seller’s in accordance with A5 and carriage;
account under the contract A7(b); e) the seller for all costs and
of carriage; e) the costs of providing the charges related to providing
e) where applicable, duties, usual proof to the buyer assistance in obtaining
e) the costs of providing taxes and any other costs under A6 that the goods documents and information in
the usual proof to the related to transit or import have been delivered; accordance with A5 and A7(b);
buyer under A6 that the clearance under B7(b)
goods have been f) the costs of insurance f) where applicable, duties,
delivered; f) any additional costs resulting from A5; taxes and any other costs
incurred if it fails to give g) where applicable, duties, related to transit or import
f) where applicable, notice in accordance with taxes and any other costs clearance under B7(b);
duties, taxes and any B10, from the agreed date or related to export clearance
other costs related to the end of the agreed period under A7(a); g) any additional costs incurred
export clearance under for shipment, provided that if it fails to give notice in
A7(a); the goods have been clearly h) the buyer for all costs accordance with B10, from the
identified as the contract and charges related to agreed date or the end of the
g) the buyer for all costs goods providing assistance in agreed period for shipment,
and charges related to obtaining documents and provided that the goods have
providing assistance in information in accordance been clearly identified as the
obtaining documents and with B7(a). contract goods
information in accordance
with B7(a).