Cost, Insurance and Freight (named port of destination)
|Applies to:||Sea and inland waterway only|
In Cost, Insurance and Freight, the seller is responsible for delivering the goods onboard the vessel at the port of shipment – not port of destination. In addition, the seller is paying for the transport and minimum insurance coverage to the named port of destination.
The buyer assumes all risk once the goods are onboard the vessel for the main carriage, but does not assume costs until the freight arrives at the named port of destination.
CIF applies to ocean or inland waterway transport only. It is commonly used for bulk cargo, oversized or overweight shipments.
|The seller is obligated to secure insurance for the buyer, but only for minimum coverage.|
CIF Incoterm Obligations
- Goods, commercial invoice and documentation
- Export packaging and marking
- Export licenses and customs formalities
- Pre-carriage and delivery
- Loading charges
- Delivery at named port of destination
- Proof of delivery
- Risk starting onboard ship
- Discharge and onward carriage
- Import formalities and duties
- Cost of pre-shipment inspection