QUESTION:
With regards to exporting goods, most international buyers, whether Muslim or non-Muslim, require the goods to be sent via the CIF (Cost, Insurance and Freight) shipping method. This means that the seller is responsible for all the costs involved right up until the goods land at the buyer’s port destination. This includes insurance that the seller has to pay for the goods. Exporting goods is virtually impossible without using the CIF method as most buyer’s would like one cost amount for their stock, and it’s also a matter of convenience. The other method of shipping is FOB (Free On Board) where the seller is only responsible for the goods until it’s loaded onto the ship. Thereafter, all associated costs (freight, insurance etc.) is the responsibility of the buyer. However, very few buyers want to opt for FOB as it’s not convenient and prefer the seller to handle everything. How should one proceed with exporting if this is the case, especially when one does not intend on getting involved with insurance?
ANSWER:
One should only deal with those companies that are willing to use the FOB method of delivery. Yes, if the purchaser directly insures the goods with the insurance company, then that is a matter between him and the insurance company. The seller will not be sinful in this instance. However, the seller should not arrange the insurance for the purchaser.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Maulana Ahmed Saeed
Date:- 04 Rabi ul Aakhir 1445 / 20 October 2023
CHECKED AND APPROVED BY:
Mufti Mohammed Desai Saheb
