Cost Insurance Freight (CIF): Meaning and definition

Under Cost Insurance Freight (CIF), an exporter or seller is responsible to pay all shipping-related costs, including packaging, insurance, and transportation, as per the terms of the CIF clause. Cost Insurance Freight is typically used when goods are transported via ocean, sea, or waterways. The International Chamber of Commerce (ICC) established incoterms, of which CIF is one. CIF requires that shipments be made to the port designated by the buyer in the sales agreement. Costs associated with additional inspection, re-routing, customs duties, or export paperwork incurred as a result of lost or damaged goods in transit shall be borne by the seller.