Cost, Insurance, Freight (CIF) is an incoterm that describes a contract in which the seller is responsible for covering transport to the port of origin, main carriage, and minimum insurance. CIF applies only to ocean or inland waterways and is commonly used for bulk cargo, oversized, or heavyweight shipments.
Under CIF, the seller is responsible for transport up to the port of destination, export clearance and fees, and minimum insurance coverage up to the named port of destination. The insurance obtained must insure the goods to 110% of their value and provide necessary documentation to the buyer for any insurance claims.
