Glossary Discription

Cost, Insurance and Freight (CIF) is an internationally recognized Incoterm (International Commercial Term) used exclusively for ocean and inland waterway transport, under which the seller is responsible for paying the costs, arranging minimum cargo insurance, and covering freight charges to deliver goods to the named port of destination. Under CIF terms, the seller fulfills their delivery obligation when goods are loaded onto the vessel at the port of shipment, at which point the risk of loss or damage transfers to the buyer, even though the seller continues to pay for transportation and insurance to the destination port. This creates a unique situation where the party bearing the risk (buyer) differs from the party paying for insurance and freight (seller) during the main carriage.