What is CIF?
CIF is one of the terms in Incoterm. This stands for Cost, Insurance, and Freight. The content of the CIF stipulates that the seller will fulfill his responsibility when the goods have been loaded on the deck at the port of loading, but must pay all transportation costs in the process of transporting the goods to the port.
What Is Cost, Insurance, and Freight (CIF)?
Cost, insurance, and freight (CIF) is an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer’s order while the cargo is in transit. Cost, insurance, and freight only applies to goods transported via a waterway, sea, or ocean.
Cost, insurance, and freight (CIF) is an international commerce term and only applies to goods shipped via a waterway or ocean.
With cost, insurance, and freight, the seller covers the costs, insurance, and freight of a buyer’s order while in transit.
Once the cargo has been delivered to the buyer’s destination port, the buyer assumes responsibility for the costs of importing and delivering the goods.
However, the risk transfer occurs from the seller to the buyer when the goods have been loaded on the vessel.
The buyer takes ownership of the goods once on the ship, and if the cargo is damaged during transit, the buyer must file a claim with the seller’s insurance company.