Incoterms 2020
CIF (Cost, Insurance and Freight)
An Incoterm under which the seller pays cost, freight and marine insurance to the destination port, but risk passes on loading.CIF applies to sea and inland waterway transport only. The seller arranges and pays for carriage and minimum insurance to the named destination port, but risk transfers to the buyer once the goods are on board at origin. Because the seller pays freight and insurance, the CIF price is a common basis for customs valuation.
Frequently asked questions
- What is the difference between CIF and FOB?
- Under FOB the buyer pays freight and insurance; under CIF the seller pays them, though risk still passes at the origin port in both.
- Does CIF include insurance?
- Yes — the seller must provide at least minimum-cover marine insurance to the destination port.