In a(n) ________________ incoterm, the buyer is responsible for customer clearance and other risks from the port while the seller arranges for shipping and insurance.

The correct choice reflects the specifics of the CIF (Cost, Insurance, and Freight) incoterm. Under CIF, the seller bears the responsibility for the costs associated with transportation, including the freight charges to the destination port, as well as insurance for the goods while they are in transit. This means that the seller must arrange the shipping of the goods and ensure that they are insured for the journey.

Once the goods reach the port of destination, the buyer takes on the responsibility for customs clearance and any associated risks. This division of responsibilities is essential in international trade as it clearly delineates who is liable for the goods at different points in the shipping process.

In contrast, other incoterms do not attribute these responsibilities in the same manner. For instance, EXW (Ex Works) places minimal obligations on the seller, leaving almost all responsibilities to the buyer. FOB (Free On Board) indicates that the seller is responsible for the goods until they are loaded onto the vessel, after which the risk transfers to the buyer. The term DYT does not represent a recognized incoterm in international trade. Understanding these distinctions is crucial for parties involved in international transactions, as it influences risk management, pricing, and logistics strategies.