CIF

Stands for: Cost, Insurance and Freight

An Incoterms rule under which the seller pays freight and minimum marine insurance to the destination port, while risk passes to the buyer once goods are on board at the port of shipment.

CIF suits buyers without a forwarder because the price includes the voyage. Remember that the insurance is only minimum cover (Institute Cargo Clauses (C)) unless agreed otherwise, and that import clearance, duty and delivery from the port remain the buyer’s.