Incoterms 2020
CIF: Cost, Insurance and Freight
Load the goods, pay ocean freight to destination, and arrange minimum insurance. Import clearance, unloading, and final delivery.
CIF at a glance
- Applies to
- Sea and inland waterway only
- Risk transfers to buyer
- When the goods are on board the vessel at the origin port. Risk passes at origin even though the seller pays freight and insurance to destination.
- Main carriage paid by
- Seller
- Insurance
- Seller, minimum cover (Institute Cargo Clauses C or equivalent). The buyer may want to top it up.
- Export clearance
- Seller
- Import clearance and duties
- Buyer
- Seller handles
- Load the goods, pay ocean freight to destination, and arrange minimum insurance.
- Buyer handles
- Import clearance, unloading, and final delivery.
- Best for
- Buyers who want minimal hassle on ocean freight; like CFR but with basic insurance included.
General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
CIF questions
Know the term, then track what it costs
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