CIF (Cost, Insurance and Freight) — INCOTERMS 2020 | FreightUtils

Same as CFR but seller must arrange marine insurance. Risk transfers at port of shipment.

CIF — Responsibilities & Risk

Seller's Responsibility

Sea freight and insurance to named destination port. Export clearance.

Buyer's Responsibility

Import clearance, duties, unloading at destination.

Risk Transfer Point

When goods are on board the vessel at port of shipment.

Cost Transfer Point

At named destination port.

Insurance Obligation

Seller must arrange insurance — minimum ICC Clause C (basic cover). Note: unlike CIP which requires Clause A, CIF only requires Clause C.

Export Clearance

Seller.

Import Clearance

Buyer.

Best For

Sea freight when buyer wants freight and insurance included in the price.

Watch Out

CIF only requires basic insurance (ICC Clause C) — buyer may want to arrange additional cover. Not suitable for containerised cargo (use CIP instead). Often confused with CIP but they have different insurance requirements since 2020.

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