CIF — Cost, Insurance and Freight
As CFR, plus the seller insures the goods to the port of destination — with minimum cover unless agreed otherwise.
- Transport
- Sea only
- Main carriage
- The seller books and pays sea freight and insurance to the named port of destination.
- Risk passes
- When the goods are on board the vessel at the port of shipment.
- Insurance
- Seller — minimum
Who pays and who carries the risk
- Export clearanceSeller
- Loading at sellerSeller
- Transport to terminalSeller
- Origin terminal & loadingSeller
- Risk passes to buyerMain carriageSeller
- Destination terminal & unloadingBuyer
- Import clearance & dutiesBuyer
- Delivery to buyerBuyer
- Unloading at buyerBuyer
Destination terminal charges are the buyer's unless they are included in the seller's carriage contract.
Seller
- Clear the goods for export
- Contract and pay sea freight to the port of destination
- Insure the cargo with at least minimum cover (Institute Cargo Clauses C), 110% of the invoice value
- Send the buyer the transport and insurance documents
Buyer
- Bear risk once the goods are on board (claims go through the insurance)
- Pay destination charges not included in the freight
- Clear the goods for import and pay duties
When to use it
Bulk and breakbulk sea shipments, commodity trades and letter-of-credit sales.
Watch out
Minimum cover protects only against major casualties. Ask for broader cover if the goods are valuable, and use CIP for containers.
Not sure which term to agree?
Tell us the route and the cargo — we'll suggest the term that fits and quote the freight for it.
Get a quoteOther Incoterms® rules
Incoterms® is a registered trademark of the International Chamber of Commerce. This guide is Cargo 4S's own summary for everyday use; for the complete rules see the official ICC Incoterms® 2020 publication.
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