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CIF Cost, Insurance and Freight.

As CFR, plus the seller insures the cargo. Minimum cover stays Institute Cargo Clauses (C).

Where risk passes

CIF named port of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded
Risk passesOn board the vessel at the port of shipment
Transport modeSea and inland waterway only
Main carriage booked bySeller
Cargo insuranceSeller, Institute Cargo Clauses (C), at least 110% of contract value
Export clearanceSeller
Import clearance and dutiesBuyer
Seller pays7 of 13 cost steps

Who pays what under CIF

CostPaid by
Loading at originSeller
Export customs declarationSeller
Carriage to port of exportSeller
Unloading of truck in port of exportSeller
Loading on vessel/airplane in port of exportSeller
Carriage (sea/air) to port of importSeller
InsuranceSeller
Unloading in port of importBuyer
Loading on truck in port of importBuyer
Carriage to place of destinationBuyer
Import customs clearanceBuyer
Import duties and taxesBuyer
Unloading at destinationBuyer

Sources: ICC, Incoterms® 2020; cost split as given inWikipedia, Incoterms (section "Allocations of costs"). Duties, fit and pitfalls below are Navo's own summary, not ICC text. Incoterms® is a trademark of the ICC.

When CIF fits

Bulk commodities and sales under letters of credit where the bank wants freight and insurance documents.

What to watch

  • Minimum cover (ICC C) only covers major casualties. The buyer may want to agree ICC (A).
  • Risk passes on board at the port of shipment.
  • For containers ICC advises CIP instead.
  • Shipping under CIF? Compare freight rates and check sailings.