CIF is an international shipping term that describes the seller's responsibility for the cost of shipping, freight charges, and insuring the cargo being shipped via ocean or waterway.
Cost, Insurance, and Freight (CIF): What It Is, How It Works, and Example
What does CIF stand for in Shipping Terms? CIF is a Shipping Incoterm that stands for: Cost, Insurance, Freight agreement, with the seller holding responsibility for all three.
In CIF terms, the seller pays for insurance until the goods reach the port of discharge. The seller pays for insurance during transport, but the buyer is responsible for the goods once they are on board.
Cost, Insurance, and Freight (CIF) is one of the 11 Incoterms® rules set by the International Chamber of Commerce. It’s 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 (CIF) is an Incoterm rule that is identical to the CFR Incoterm rule except in one aspect: insurance. Even though the risk transfers to the seller upon loading the goods on board the vessel, in CIF, the seller is obliged to take out insurance cover for the buyer’s risk.
What is CIF shipping and is it suitable for eCommerce merchants? CIF (Cost, Insurance, and Freight) means the seller pays ocean freight and insurance, but once the goods are loaded on the ship at the origin port, risk transfers to the buyer.
Standardized by the International Chamber of Commerce, CIF is a testament to streamlined trade. But what exactly does it denote? CIF stands for Cost, Insurance, and Freight. The seller covers all transport costs to the buyer's destination port, insurance for the shipment through its final delivery. Still, it is a bit more complex.