CIF — Cost, Insurance and Freight (Incoterms 2020)
CIF — Cost, Insurance and Freight (Incoterms® 2020). Risk transfers when goods are on board the vessel at the port of shipment (same as fob/cfr).. Freight included. Insurance: C-level minimum (institute cargo clauses).Generate compliant CIF documents in 60 seconds. Free up to 3/month.
infoCIF at a Glance
Responsibilities
- Risk Transfer
- When goods are on board the vessel at the port of shipment (same as FOB/CFR).
- Cost Responsibility
- Seller bears costs up to destination port (freight + insurance included). Buyer bears import clearance, duties, inland transport.
- Transport Mode
- Sea/Inland Waterway ONLY
- Freight Included
- Yes — seller arranges & pays main carriage
- Insurance Included
- Yes — C-level minimum (institute cargo clauses)
- Category
- Main Carriage Paid (C)
When to Use CIF
- For non-containerized sea freight
- When buyer wants seller to arrange insurance
- For traditional commodities trade where seller has better insurance access
When NOT to Use CIF
- For containerized cargo (use CIP instead)
- When buyer wants higher insurance coverage (CIP requires A-level)
articleCIF Explained — Practical Guide
What CIF Means in Plain Language
CIF (Cost, Insurance and Freight (Incoterms® 2020)) is an Incoterms® 2020 term in Category C — main carriage paid. Under CIF, the seller when goods are on board the vessel at the port of shipment (same as fob/cfr).and pays for main carriage to the named destination. The seller must also procure C-level minimum (institute cargo clauses) insurance coverage.
Step-by-Step: Who Does What
- Seller: Makes goods available at the named port/place.
- Export clearance: Seller arranges & pays for export clearance.
- Main carriage: Seller contracts & pays carrier to named destination.
- Risk transfers: When goods are on board the vessel at the port of shipment (same as FOB/CFR).. After this point, loss/damage is buyer's risk.
- Insurance: Seller buys C-level minimum (institute cargo clauses) coverage for buyer's benefit.
- Import clearance: Buyer arranges & pays for import clearance, duties, taxes at destination.
- Final delivery: Buyer unloads at destination.
Common CIF Mistakes to Avoid
- Using CIF for air/road/rail shipments — mode mismatch invalidates the term.
- Not naming the precise place/port — "CIF China" is invalid; use "CIF Shanghai" or "CIF Guangzhou".
- Assuming insurance is included when it's not — only CIP and CIF include seller-procured insurance.
- Confusing risk transfer with cost transfer — they happen at different points in C-terms.
- Missing "Incoterms® 2020" in contract — without edition, old 2010 rules may apply.
local_shippingCarrier Implementation Notes for CIF
local_shippingFedEx
- • Terms of Sale field: CIF + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance declared on CI
- • Ocean AWB / Bill of Lading required
inventory_2UPS
- • Terms of Sale field: CIF + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance declared on CI
- • Ocean AWB / Bill of Lading required
deployed_codeDHL
- • Terms of Sale field: CIF + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance declared on CI
- • Ocean AWB / Bill of Lading required
downloadFree: Incoterms® 2020 Cheat Sheet (PDF)
One-page reference: all 11 terms, risk transfer points, cost matrix, when to use each. Perfect for your desk or forwarding team.
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