Cost, Insurance, Freight (CIF) is an incoterm that specifies the seller’s responsibilities in a contract. The seller must cover the costs of transporting goods to the port of destination, including freight and minimum insurance. This term applies only to ocean or inland waterway transport and is commonly used for bulk cargo, oversized, or heavyweight shipments. The seller is responsible for export clearance and fees, ensuring that the goods reach the ship at the port of origin.
Under CIF, the seller must provide insurance covering 110% of the goods’ value. The risk transfers to the buyer once the goods are loaded on the vessel at the port of origin. The seller must supply the necessary documentation for the buyer to make any insurance claims. This setup ensures that the seller handles significant logistical aspects up to the point of shipment.
