If an exporter in a developing country sells to an importer in a developed country on a CIF,the responsibility transfers from exporter to importer at the ship's rail.If there is then a loss,the exporter may suffer a cash flow problem while filing the insurance claim.

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In a CIF (Cost, Insurance, and Freight) contract, the responsibility transfers from the exporter to the importer once the goods pass the ship's rail, but the exporter is responsible for arranging and paying for insurance. Therefore, the importer would file the insurance claim, not the exporter.

If an Exporter in a Developing Country Sells to an Importer