Cost, Insurance, and Freight (CIF)
Cost, Insurance, and Freight (CIF) is an international trade phrase that means the seller is liable for the cost of the products, insurance, and freight to get them to the buyer’s destination port.
Cost, Insurance, and Freight (CIF)
The international trade phrase “Cost, Insurance, and Freight” (CIF) is used to specify the roles of the buyer and the seller in a given transaction. Cost, insurance, and transportation to the buyer’s designated port all fall under the purview of the seller under CIF terms. This means the seller is responsible for coordinating shipping, paying for any necessary insurance on the goods in transit, and covering all costs associated with delivery. Once the products have arrived at the target port, the buyer assumes full responsibility for any additional expenses and hazards associated with the commodities, including but not limited to customs duties, taxes, and fees. The Incoterm “Cost, Insurance, and Freight” (CIF) is one of 11 created by the International Chamber of Commerce for use in international trade, and it is commonly used for commodities shipped by sea.