Glossary
What is CIF (Cost, Insurance and Freight)?
CIF (Cost, Insurance and Freight) is an Incoterms® 2020 rule for sea and inland waterway shipments. The seller pays for the goods, main carriage and minimum cargo insurance to the named destination port — but risk passes to the buyer once the goods are loaded on board. |
Under CIF, what is each party responsible for?
- Seller: export packing and clearance, carriage to the named destination port, and insurance covering 110% of contract value, plus the policy and transport documents the buyer needs to claim.
- Buyer: import clearance, duty and VAT, unloading and onward carriage — plus all risk from the moment the goods are loaded, even though the seller is still paying the freight.
When is CIF used?
CIF applies only to sea and inland waterway carriage and suits bulk, oversized and heavyweight cargo. The ICC advises against it for containerised freight, where CIP or CPT fit better because risk should pass at the terminal, not on loading. The ICC first published Incoterms in 1936; the 2020 edition took effect on 1 January 2020.
Does CIF insurance protect the buyer fully?
No. CIF requires only minimum cover — Institute Cargo Clauses (C). Buyers wanting all-risks protection should negotiate Clauses (A) or agree CIP instead.
Filing CIF shipments? iCustoms pulls invoice and Incoterms data straight into your CDS declaration. |
