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This entry was published on 2014-09-22
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SECTION 2-320
C
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 3
Section 2--320. C. I. F. and C. & F. Terms.

(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.