C.F.&I.
An abbreviation for cost, freight, and insurance
that is used in a sales contract to indicate that the
purchase price quoted for the goods by the seller
includes the expense incurred by the seller for shipment
of such goods and for insurance of the goods
against loss or destruction until their arrival at the
destination named by the buyer.
The abbreviation C.F.&I. is synonymous
with the abbreviation C.I.F. commonly found in
contracts for foreign shipments. A seller who has
entered a sales contract with a C.F.&I. provision
agrees to accept the expense of placing the goods
into the custody of a carrier for shipment from
their port of origin to their designated location
and to obtain a negotiable bill of lading, which
will be endorsed by the buyer upon receipt of
payment for the goods. The seller has the
responsibility of loading the cargo and obtaining
a receipt from the carrier, which might be
incorporated into the bill of lading to show that
freight has been paid by him or her. The seller
must also purchase insurance against the loss,
damage, or destruction of such goods and have
the buyer designated as the beneficiary. The
seller prepares an invoice of the goods to be
shipped and sends the necessary documents to
both the shipper and the buyer so that the buyer
can take delivery of the goods upon arrival at
their destination.
CROSS-REFERENCES
Shipping Law.
