Transportation

CIF (Cost, Insurance, and Freight)

An international trade term indicating that the seller pays for cost, insurance, and freight to a destination port.

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Updated 2025-10-01

Definition

CIF defines a shipping agreement where the seller is responsible for the goods' cost, insurance, and freight charges to the port of destination.

Overview

Overview

CIF is widely used in international trade contracts to define responsibilities between buyers and sellers.

Seller Responsibilities

  • Product cost
  • Insurance coverage
  • Freight transportation to the destination port

Buyer Responsibilities

  • Import duties
  • Unloading charges
  • Local transport after the port

Example

A supplier ships electronics from China to Germany under CIF terms, covering all shipping costs and insurance.

Tags

#CIF#Incoterms#Shipping#International Trade

Related Terms

FOB (Free On Board)
EXW (Ex Works)
DDP Shipping