FOB: The seller is responsible for pre-shipment costs and export customs clearance; risk transfers to the buyer once the goods pass the ship's rail; the buyer is responsible for ocean shipping and insurance.

CIF: The seller is responsible for freight and insurance to the destination port, but risk still transfers at the time of loading (not upon arrival at the port).

Practical notes: - Under CIF, it is sufficient for the seller to insure against the minimum cover; if the buyer requires higher protection, this should be agreed. - Destination port unloading charges and import customs clearance are allocated differently depending on the terms (CIF does not include unloading). - When settling by letter of credit, ensure that document requirements are consistent with the terms.