What is the CIF Incoterm
The CIF Incoterm, or “Cost, Insurance and Freight”, is exclusive to shipping and indicates that the seller is responsible for the cost and freight of bringing the goods to the port of destination specified by the buyer. The seller must also provide insurance for the transport of the goods.
Unlike other incoterms, the risk transfer point is not the same point as the cost transfer point. With the CIF Incoterm, risk is transferred when the goods are loaded on board the ship at origin.
Seller’s obligations under the CIF Incoterm
- Delivery of goods and documents required
- Packaging and wrapping
- Inland transport in the country of origin
- Customs at origin
- Exit charge
- International freight
Buyer’s obligations under the CIF Incoterm
- Payment of the goods
- Arrival expenditures
- Customs on arrival
- Inland transport at the destination country
- Payment of fees