Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2025 – Your All-in-One Resource to Complete Exam Success!

Under the CIF (Cost, Insurance, and Freight) Incoterm, the seller has specific obligations that center around covering the costs associated with transport and insuring the goods until they reach their destination port. The correct choice states that the seller is responsible for paying for the main carriage and insurance, which encapsulates the core essence of the CIF term.

In detail, the seller must ensure that they arrange and pay for the transportation of goods to the designated port of arrival, which includes the shipping costs. Additionally, the seller is required to obtain insurance to protect the goods during transit against loss or damage. This obligation enhances the security of the transaction for the buyer, as the seller must provide a minimum level of insurance that covers the goods for the duration of the journey, which is a crucial aspect of the CIF arrangement.

The other options do not encompass all the responsibilities placed on the seller by the CIF terms. For instance, merely paying for the main carriage, without including insurance, does not fulfill the seller's obligations under this Incoterm. Similarly, paying for delivery and handling costs or offering a discount on shipping charges does not accurately represent the comprehensive responsibilities of the seller in a CIF agreement.