CIF INCOTERM (Cost, Insurance and Freight)

Using CIF incoterm

CIF, or “Cost, Insurance and Freight,” is exclusive to shipping and indicates that the seller is responsible for the cost and freight to 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, here the risk transfer is not made at the same point as the cost transfer, with CIF risk is transferred at the time that the goods have been loaded on board the ship at origin.

Seller’s obligations under CIF

  • Delivery of goods and documents required
  • Packaging and wrapping
  • Inland transport in the country of origin
  • Customs at origin
  • Exit charge
  • International freight
  • Insurance

Buyer’s obligations under CIF

  • Payment of the goods
  • Arrival expenditures
  • Customs on arrival
  • Inland transport at the destination country
  • Payment of fees

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