Our exporter exports a hatch of clothes to Europe under CI
F: The contract specifies that insurance is to be covered by the exporter against all risks with CICC and pay with credit. Our exporter ships the goods in nominated port of shipment within specified time and the shipping company signs bills of lading, and then our exporter negotiates with Bank of China. The second day, our exporter are informed that the shipping vessel catches fire on the sea and all the clothes are burnt down. The buyer requires our exporter to lodge a claim with CICC, or else to refund. Our exporter absolutely refuses this requirement and puts forward settlements, distinguishing both parties’ obligations and finally settles this case.Analysis: according to INCOTERMS 2010, risks transfer to the buyer after the goods are on the board the vessel. The goods are lost during shipment and are to be borne by the buyer. In addition, CIF is used for symbolic delivery in which documents are presented against goods. Thus the buyer shall not refuse to pay the seller presents right documents, even if the goods get lost or damaged during shipment.