# CIF, Cost, Insurance and Freight (Incoterms 2020)

CIF (Cost, Insurance and Freight) means the seller pays the sea freight to the named destination port and buys cargo insurance for the buyer, at least Institute Cargo Clauses (C) for 110 % of the contract value, but risk passes once the goods are on board at the port of shipment. It is for sea and inland waterway only.

- Transport: sea and inland waterway only
- Delivery and risk transfer: On board the vessel at the port of shipment, with freight and minimum insurance paid by the seller to the destination port.
- Seller's costs run to: Arrived at destination plus insurance, ICC (C), 110 %

## Responsibilities

| Job | Who |
|---|---|
| Export clearance | Seller |
| Loading at origin | Seller |
| Main carriage | Seller |
| Insurance | Seller, ICC (C) minimum |
| Unloading at destination | Buyer, unless in seller's freight contract |
| Import clearance and duties | Buyer |

## Common mistakes

- **Minimum cover is narrow** ICC (C) covers major casualties such as fire, sinking or collision, but not theft or most handling damage. For manufactured goods the buyer often needs ICC (A); agree it in the contract.
- **Risk still passes at origin** Paying for insurance does not mean the seller carries the risk. If the goods are damaged at sea, the buyer claims on the policy.
- **Containers** For containerised cargo use CIP, which also requires the wider ICC (A) cover.

## CIF or CIP?

CIP works for any mode and requires ICC (A) cover, the broadest standard clauses.

Incoterms® is a trademark of the International Chamber of Commerce; CartonMath is not affiliated with the ICC.

## FAQ

**What does CIF mean?**
CIF (Cost, Insurance and Freight) means the seller pays the sea freight to the named destination port and buys cargo insurance for the buyer, at least Institute Cargo Clauses (C) for 110 % of the contract value, but risk passes once the goods are on board at the port of shipment. It is for sea and inland waterway only.

**When does risk pass under CIF?**
On board the vessel at the port of shipment, with freight and minimum insurance paid by the seller to the destination port.

**Who pays the main freight under CIF?**
The seller arranges and pays the main carriage.

**Who pays import duties under CIF?**
The buyer clears the goods for import and pays any duties and taxes under CIF.

**Can CIF be used for container shipments?**
CIF is a sea and inland waterway rule. For containers, the ICC recommends CIP instead, because containers are handed over at a terminal before loading.

Source page: https://cartonmath.com/incoterms/cif/
Updated: 2026-10-06
Publisher: CartonMath (https://cartonmath.com)