An abbreviation used in some international sales contracts. When the selling price includes all "costs, insurance and freight" for goods sold "charge in full", the seller arranges and pays for all relevant expenses involved in shipping goods from their export point to a given import point.
Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller.
Shipping term included in a contract of sale (abbreviated as CIF) meaning that the seller agrees to take full responsibility for delivering the goods to the port of loading, clear the goods for export, and arrange and pay for transportation and marine insurance over the goods to the named port of discharge, such costs being included in the price of the goods. Nonetheless, all risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail at the port of loading. It is up to the buyer to arrange transportation from the port of discharge.
The exporter pays the cost of goods, cargo and insurance plus all transportation charges to the named port of destination.
The seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss or damage to the goods during carriage
Incoterms 2000) An international trade term of sale in which, for the quoted price, the seller/exporter/manufacturer clears the goods past the ships rail at the port of shipment (not destination). The seller is responsible for paying for the cost associated with transport of the goods to the named port of destination. However, once the goods pass the ship's rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs.
The supplier of the goods pays for insurance and transportation. Abbreviation: CIF.
Cost, Insurance and Freight (CIF) is a common term in a sales contract that may be encountered in international trading when ocean transport is used.