Cost Insurance Freight Cif Definition

Costs for unloading the goods and any duties taxes etc.

Cost insurance freight cif definition. Cost insurance and freight cif use of this rule is restricted to goods transported by sea or inland waterway. Cost insurance and freight cif is an expense paid by a seller to cover the costs insurance and freight of a buyer s order while it is in transit. Unlike cfr and cif terms the seller has agreed to bear not just cost but also risk and title up to the arrival of the vessel at the named port. Cost insurance and freight cif is a term used by the international chamber of commerce for professional trading purposes since 1936.

In practice it should be used for situations where the seller has direct access to the vessel for loading e g. Cost insurance and freight cif are the expenditures that are borne by the seller in order to cover not just the regular costs but also the charges pertaining to the freight and insurance for securing the losses if any that could arise out of probable damage or theft of a customer s order while the same is in transit for being delivered to the. Cif stands for cost insurance and freight. Rules of cost insurance freight incoterm.

Bulk cargos or non containerised goods. As defined in incoterms 2010 cif means that the seller is required to deliver the goods on board the vessel or procures the goods already so delivered. In cif terms the seller clears the goods at origin places the cargo on board and pays for insurance until the port of discharge at the minimum coverage. A shorthand term for signifying that the price invoiced or quoted by a seller includes insurance and all other charges up to the named port of destination.

The goods are exported to a port named in. Free cif incoterm 2020 pdf. Cif cost insurance and freight paid to port of destination incoterms 2020 explained. Cif is an incoterm where the seller would need to pay for the freight insurance and delivery costs to bring the goods to the end port.

The risk however is transferred to the buyer as soon as the goods are put onto the ship. Cost insurance and freight cif is a method of exporting goods where the seller pays expenses until the product is completely loaded onboard ship. Are for the buyer. It is important to have an understanding of the cost insurance and freight cif incoterm when shipping internationally.

Cost insurance freight cif. The seller pays the same freight and insurance costs as they would under a cif arrangement. In comparison carriage and insurance paid to cip terms include insurance and all charges up to a named place in the country of destination usually the.