Watch: CIF Incoterms Explained
CIF means Cost, Insurance and Freight. The seller arranges and pays for ocean transportation and minimum cargo insurance to the named destination port. However, cargo risk transfers to the buyer when the goods are loaded aboard the vessel at the origin port—not when the shipment reaches its destination.
Video Transcript
“What does CIF mean in international shipping?
This 30-second guide explains Cost, Insurance and Freight under Incoterms® 2020, including the seller’s transportation and insurance obligations and the point where cargo risk transfers to the buyer.
Under CIF, the seller clears the goods for export, loads them aboard the vessel and pays for ocean freight and minimum cargo insurance to the named destination port.
However, risk transfers to the buyer when the goods are loaded aboard at the origin port—not when they arrive.
The buyer handles import clearance and pays applicable import duties and taxes.
CIF applies only to sea and inland waterway transport.
Always specify the exact destination port in the sales contract and consider whether additional insurance coverage is needed.”
Learn More About CIF
This video provides a brief introduction. Read the complete CIF Incoterm guide for detailed information about ocean freight, cargo insurance, customs responsibilities, costs and risk transfer.
You can also explore all Incoterms® to compare CIF with FOB, CIP and other international trade rules.
Incoterms® is a registered trademark of the International Chamber of Commerce.
