What is CIF?
CIF, or Cost, Insurance, Freight, is an international trade term that describes a contract in which the seller is responsible to cover transport to the port of origin, main carriage, and minimum insurance.
According to CIF Incoterms, what is each party responsible for?
Under CIF, the seller is responsible for transport up to the port of destination, export clearance and fees, and minimum insurance coverage up to the named port of destination. The insurance obtained must insure the goods to 110% of their value and provide necessary documentation to the buyer for any insurance claims.
The buyer is responsible for the cost of the goods, import clearance and associated fees, and carriage from the port of destination.
Under CIF the buyer assumes risk once the goods are loaded onto the vessel for main carriage, but is not financially responsible until the goods reach the port of destination.
When is CIF used?
CIF applies only to ocean or inland waterways and is commonly used for bulk cargo, oversized, or heavyweight shipments.
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