Definition and full name
CIF, full name Cost, Insurance and Freight, means that the seller completes the delivery when the goods pass over the ship's rail at the port of loading. Under CIF terms, the seller is required to pay the freight required to transport the goods to the named port of destination, and purchase transportation insurance for the goods, bearing the premium, but the risk of the goods passes to the buyer after the port of shipment has passed over the ship's rail.
Applicable mode of transport
The CIF term is mainly used for sea and inland waterway transport.
Responsibility and obligation
Seller's Responsibilities and obligations:
Responsible for chartering and booking the cargo space, loading the cargo on board within the specified loading port and time limit, and paying the freight of the cargo to the port of destination.
Bear all costs and risks until the goods pass over the ship's rail at the port of loading.
Handle freight insurance and pay the premium. Insurance is usually at least 110% of the contract price and covers general minimum risks.
Handle all customs clearance procedures for export of goods.
Buyer's Responsibilities and obligations:
Bear the risks and expenses of the goods after crossing the ship's rail at the port of loading.
Handle import customs clearance of the goods at the port of destination.
Accept the documents or electronic messages provided by the seller and make payment according to the contract.
Price composition
CIF price =COST +FREIGHT +INSURANCE.