CIF, or Cost Insurance and Freight, is an Incoterms 2020 rule for sea and inland waterway transport. The seller arranges and pays for carriage and required insurance to the named destination port, while risk transfers when the goods are loaded on board at shipment.
Quick reference for CIF
| Check | What it means for the transaction |
|---|---|
| Category | Trade and logistics |
| Record to keep | Keep the agreed term, named place, shipment reference, carrier event, cost allocation and delivery evidence when they apply. |
| Do not infer | A delivery term does not settle payment timing, transfer of title or regulatory responsibility unless the contract says so. |
CIF and nearby terms
- Incoterms: Incoterms are eleven standardized trade terms published by the International Chamber of Commerce for contracts involving the sale of goods.
- Landed cost: Landed cost is the total cost of obtaining a product and bringing it to the required location.
