FFreight Tools

CIF — Cost, Insurance and Freight

Like CFR, plus the seller buys minimum marine insurance to the destination port.

CIFCost, Insurance and FreightSea freight only

Where risk transfers

When the goods are on board the vessel at the port of shipment.
Mode: sea and inland waterway only

Who pays what

Export customsSeller
Origin carriageSeller
Main freightSeller
InsuranceSeller
Import customsBuyer
Duties & taxesBuyer
Delivery to placeBuyer

Obligations

Seller

  • Pay freight to the destination port
  • Buy at least minimum cover (Institute Cargo Clauses C) for the buyer's benefit

Buyer

  • Carry the risk from the origin port
  • Clear for import and pay duties
  • Top up insurance if minimum cover is not enough

Watch out

Sea only. Insurance is the minimum ICC (C) unless agreed otherwise — the all-risks equivalent is CIP.

More terms

Frequently asked questions

What does CIF mean in Incoterms 2020?

CIF stands for Cost, Insurance and Freight. Like CFR, plus the seller buys minimum marine insurance to the destination port. Risk transfers when the goods are on board the vessel at the port of shipment.

Who pays for the main freight under CIF?

The seller pays the main carriage under CIF.