INCOTERMS 2010 FOR SEA AND WATERWAY TRANSPORT : table of costs and risks allocation.
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An example with a shipment from Belgium : « CIF Valparaiso/Chile from Antwerp port » = the seller takes out and prepays transport and cargo insurance up to the port of Valparaiso, goods still on board the vessel (or unloaded if the service is included in the contract of carriage and the buyer has been notified). The seller carries out the export customs formalities but not the import formalities in Chile. The seller must notify the buyer that the goods have been delivered at the place of shipment in Antwerp. From that point, the buyer bears the risks of loss of or damage to the goods in transit. The seller must give the buyer : bill of lading « on board », insurance certificate. In case of loss of or damage incurred to the goods after the port of shipment, the buyer will get compensation from the insurance company contracted by the seller. Therefore, the buyer must settle the full amount of the invoice.