CIF Incoterms 2020 — Cost, Insurance and Freight
The seller pays freight plus minimum insurance to the port, but the risk is yours from origin.
Cost, Insurance and Freight
Sea & inland waterway onlyThe seller pays freight plus minimum insurance to the port, but the risk is yours from origin.
Insurance under CIF is minimum cover only (Institute Cargo Clauses C).
Supply chain & cost split
- 1Export packagingS
- 2Loading at originS
- 3Pre-carriageS
- 4Export clearanceS
- 5Origin terminal (THC)S
- 6Main carriageS
- 7InsuranceS
- 8Destination terminal (THC)B
- 9Import clearanceB
- 10Delivery & unloadingB
Where the risk transfers
On board the vessel at the port of shipment — risk passes here even though the seller pays freight and insurance to destination.
CIF is a C-term: the seller books and pays the main carriage all the way to destination, but the risk of loss or damage transfers to the buyer much earlier — at origin. If the cargo is damaged in transit, it is the buyer's loss even though the seller arranged the freight. Insure the journey accordingly.
Who pays for what
| Supply-chain stage | Who pays |
|---|---|
| Export packagingPacking and marking the goods for international transport. | Seller |
| Loading at originLoading the goods onto the first vehicle at the seller's premises. | Seller |
| Pre-carriageInland transport to the terminal or port of departure. | Seller |
| Export clearanceExport customs formalities and duties in the origin country. | Seller |
| Origin terminal (THC)Terminal handling charges at the port or terminal of departure. | Seller |
| Main carriageThe main international leg — ocean freight or air / road carriage. | Seller |
| InsuranceCargo insurance covering the main carriage. | Seller |
| Destination terminal (THC)Terminal handling charges at the arrival port or terminal. | Buyer |
| Import clearanceImport customs clearance, duties and taxes at destination. | Buyer |
| Delivery & unloadingOnward delivery to the final point and unloading. | Buyer |
Frequently asked questions
- Who pays for the main freight under CIF?
- Under CIF (Cost, Insurance and Freight) the seller books and pays the main carriage to the agreed destination.
- When does risk transfer under CIF?
- On board the vessel at the port of shipment — risk passes here even though the seller pays freight and insurance to destination.
- Is CIF suitable for air or container shipments?
- No. CIF is written for sea and inland-waterway transport only. For containerised or air freight use FCA, CPT or CIP instead.
Find prep-centers and 3PL warehouses that handle inbound, customs and Amazon FBA prep for this kind of shipment.