CIF - COST INSURANCE & FREIGHT


Under CIF (“Cost, Insurance and Freight”), the vendor delivers the products, cleared for export, aboard the vessel at the port of cargo, pays for the transport of the products to the port of destination,and additionally obtains and pays for a minimum amount of the products through their journey to the named port of destination.

The buyer assumes all risk once the products area unit onboard the vessel for the most carriage; but, they don’t combat any prices till the freight arrives at the named port of destination.

CIF applies to ocean or inland waterway transport solely. It's unremarkably used for bulk loading, outsized or overweight shipments.If the freight is containerized and delivered solely to the terminal, use CIP instead. If victimization CIP instead, amount defaults to all-risk; but, the parties could hash out a lower coverage demand.

The vendor is obligated to secure insurance for the customer, however, just for minimum coverage.

CIF Incoterm Obligations

Seller’s Obligations

  • Goods, business invoice and documentation
  • Export packaging and marking
  • Export licenses and customs formalities
  • pre-carriage and delivery
  • Loading charges
  • Delivery at the named port of destination
  • Proof of delivery
  • Cost of pre-shipment review
  • Minimum amount


Buyer’s Obligations


  • Payment for product as laid out in the sales contract
  • Discharge and onward carriage
  • Import formalities and duties
  • Cost grievous clearance pre-shipment review