What is CIF (Cost, Insurance and Freight)?

CIF means the seller pays the ocean freight and minimum insurance to bring the goods to the buyer's named destination port. The buyer handles import clearance, duties and delivery from the port.

CIF is convenient when you do not have a freight forwarder: you get one price that lands the goods at your port.

Risk still passes to the buyer when the goods are loaded on the vessel in China, even though the seller pays the freight. Destination port charges are normally the buyer's cost.

Related terms

IncotermsIncoterms are standard international trade terms, published by the International Chamber of Commerce, that define where the seller's responsibility for cost and risk ends and the buyer's begins.
FOB (Free On Board)FOB, or Free On Board, means the seller delivers the goods on board the ship at the named Chinese port and handles export clearance. The buyer pays for ocean freight, insurance and everything after.
DAP (Delivered At Place)DAP means the seller delivers the goods to a named place in the buyer's country, ready for unloading. The buyer handles import clearance and pays duties and taxes.

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