Case study
1. Prepaid shipping documents
For freight prepaid or collect, it is usually written in the freight column of a orignal B/L as prepaid or collect. For this case, it precisely indicated term as CIF term but if freight is indicated as collect, it is definitely breaching credit terms.

2. CIF term and CIF - FO(Free Out) term
The CIF term includes freight and insurance fee which a purchaser issue shipping documents that prepaid freight and insurance up to the arrival port. At this time, the freight is fee including insurance expense and freight up to the arriving port. The CIF - FO term is to determine who takes burden of discharging fee when the shipment arrives between the buyer and the shipper which has nothing to do with the seller. The FO(Free Out) term is related to stevedoring charges that arise as surcharges. Such unloading cost is to pay after the products are actually unloaded so the fee can be paid by buyer and request payment to the seller later. There are heavy lift sursage, port rates and optional destination fee for these surcharges.

3. Expense responsibility per shipping terms and condition
Per I.C.C, with a original B/L it only stipulates freight fee according to the terms of credit, therefore, a negotiating bank should accept documents regardless of detail provisons of the original B/L and validity. (I.C.C put 459 case No. 119).

Conclusion
For this case, CIF.FO condition in the shipping documents even though the credit term is CIF is relevant, however, wth CIF term, payment collect indication is discrepancy when the freight is prepaid method.