CIF (Cost, Insurance and Freight)
CIF is an international shipping agreement that covers the fees, insurance, and freight of a buyer’s order in transit.
Sales made at the value of the property, provided that it is loaded on board to carry the goods at a defined place, and at a discounted price consisting of the insurance cost to be paid by the Seller and the freight are described as “CIF shipments” in the legal definition. The items of the Seller are left on the vessel in order to complete the deal. The charges and freight required to deliver the products to the specified port of destination must be agreed upon and paid for by the Seller under this provision. Additionally, the seller agrees for insurance coverage to protect the buyer from the danger of the items being lost or damaged during transportation. Only transportation by sea or interior waterways should use this phrase.