Question

When the seller has agreed to deliver the goods to the buyer at the place the buyer names in the country of import, with all costs, including duties paid is referred to as:

A) DDP.
B) FCA.
C) FAS.
D) FOB.
E) CIF.

Answer 1

When the seller has agreed to deliver the goods to the buyer at the place the buyer names in the country of import, with all costs, including duties paid, it is referred to as CIF (Cost, Insurance, and Freight). In a CIF transaction, the seller is responsible for arranging and paying for the transportation of the goods to the specified destination in the buyer's country. The seller is also responsible for purchasing insurance to cover the goods during transit. Additionally, the seller bears the cost of any import duties or taxes.

Step-by-step explanation:

When the seller has agreed to deliver the goods to the buyer at the place the buyer names in the country of import, with all costs, including duties paid, it is referred to as CIF (Cost, Insurance, and Freight).

In a CIF transaction, the seller is responsible for arranging and paying for the transportation of the goods to the specified destination in the buyer's country. The seller is also responsible for purchasing insurance to cover the goods during transit. Additionally, the seller bears the cost of any import duties or taxes.

For example, if a buyer in the United States purchases goods from a seller in China on CIF terms, the seller will be responsible for shipping the goods to the buyer's specified location in the United States and will cover the costs of transportation, insurance, and any import duties.