Under the Cost, Insurance and Freight in shipping agreement, the charges related to cost, insurance and freight are borne by the seller when goods are in transit. CIF is mainly used when goods are being transported using sea
, ocean or waterways. CIF is a part of the 11 incoterms
by the International Chamber of Commerce (ICC). Under CIF, goods are exported to the port specified by the customer in the sales contract1
· The seller is expected to bear the cost of any loss or damage to the products when they are in transit.
· The seller is also expected to cover expenses in case goods require any additional inspection, rerouting, custom duties, or export paperwork.