In CIF, the seller delivers when the goods pass the ship’s rail in the port of shipment.The seller pays the cost and freight necessary to deliver the goods to the named port of destination and also procures marine insurance. The seller is only required to obtain minimum insurance coverage. However, the risk of loss or damage of the good and any additional costs due to events occurring after the time of delivery are transferred from the seller to the buyer. The seller takes the responsibility to clear the goods for export. CIF can only be used for sea and inland water way transport.