CIF – Cost, Insurance and Freight
Incoterms® 2020 rule: transfer of risk, cost sharing and customs responsibilities.
The CIF rule in brief
CIF (Cost, Insurance and Freight) is a rule in Incoterms® 2020 that can be used only for sea and inland waterway transport: "Cost, insurance and freight". It sets, in the sales contract, how delivery of the goods and costs and risks are shared between seller and buyer.
When does risk transfer?
When the goods are loaded on board the vessel
Export clearance
The seller
Import clearance
The buyer
Insurance: Seller · ICC (C)
Seller's obligations
In addition to CFR obligations, takes out minimum cargo insurance under ICC (C).
Buyer's obligations
Handles unloading and import clearance at the destination port and bears risk after loading on board.
When is it used?
Traditionally common in sea trade with letters of credit; note that the insurance cover is only the minimum.
This page is for general information; for the full scope of rights and obligations, see the ICC's official Incoterms® 2020 text and your contract terms.
Frequently asked questions
What is CIF?
CIF (Cost, Insurance and Freight) is a rule in Incoterms® 2020 that can be used only for sea and inland waterway transport: "Cost, insurance and freight". It sets, in the sales contract, how delivery of the goods and costs and risks are shared between seller and buyer.
What is the difference between CIF and CFR?
CIF: In addition to CFR obligations, takes out minimum cargo insurance under ICC (C). CFR: Pays the freight to the destination port; risk passes to the buyer once the goods are loaded on board.