What is Cost, Insurance and Freight (CIF) Shipping Incoterm?

Part of the Comprehensive Incoterms Guide

 

CIF In Plain English

CIF (Cost, Insurance, And Freight) is a tricky incoterm. Read the details carefully. Not recommended.

Where Is The Named Place For Handing Over Responsibility From The Seller To The Buyer?

This incoterm works exactly like CPT, excepting the seller is also responsible for arranging main carriage insurance.

What Does The ICC Say?

Not recommended for containerized freight. Designed for bulk and break bulk cargo.

Is This A Good Choice?

Refer to CFR.

CFR Tips And Tricks

  • Refer to CPT, obviously excepting the tip on the buyer arranging insurance.
  • The seller need only arrange minimum insurance cover, to the invoice value of the goods. If the buyer considers that this level of cover is not sufficient, an agreed level of cover can be included elsewhere in the contract of sale.
  • Although the seller is responsible for insurance, the risk transfers to the buyer before the main carriage.
  • The seller is not obliged to arrange insurance for pre-carriage in the export country or carriage in the import country unless this is specified elsewhere in the sales contract.

Other Incoterms

EXW | FCA | FAS | FOB | CPT | CIP | CFR |DAT | DAP | DDP