CIF (Cost, Insurance, and Freight)

CIF is an international trade term under Incoterms® that defines the seller’s responsibility for delivering goods to a specified port of destination. Under CIF, the seller covers the cost of the goods, marine freight, and minimum insurance protection during transport. The seller’s responsibility for risk ends once the cargo is loaded onto the vessel at the port of shipment, at which point the risk transfers to the buyer. CIF is used exclusively for sea and inland waterway transport and is common in bulk and containerized shipments. While the seller pays for freight and insurance, the buyer remains responsible for import customs clearance, duties, taxes, and onward transportation. CIF simplifies pricing for buyers but may limit control over carrier and insurance choices.