Cost, Insurance and FreightCIF
When the goods are on board the vessel at the port of shipment (as CFR); the seller also provides insurance.
CIF (Cost, Insurance and Freight) is an Incoterms® 2020 rule for sea and inland waterway transport only, in group C. As with CFR, the seller contracts and pays for the carriage to the named port of destination, and risk transfers to the buyer earlier, when the goods are on board the vessel. CIF adds a further seller obligation: cargo insurance.
Under CIF the seller must obtain insurance for the buyer's benefit to the destination port, at a minimum level of cover — by default Institute Cargo Clauses (C) or similar. The seller also clears the goods for export; the buyer is responsible for import clearance and duties and bears risk during the main carriage despite the seller having arranged carriage and insurance.
The level of cover is the main difference from CIP: CIF requires only the minimum Clause (C) cover, whereas CIP requires the higher Clause (A) cover.
Cost & risk along the journey
Who is responsible
Turkey delivery code
Same group
Frequently asked questions
- QWhat does CIF mean in Incoterms 2020?
- ACIF stands for Cost, Insurance and Freight. The seller pays the freight and minimum cargo insurance to the named destination port, but risk transfers to the buyer when the goods are on board the vessel at the port of shipment.
- QWhen does risk transfer under CIF?
- ARisk transfers when the goods are on board the vessel at the port of shipment, even though the seller pays freight and insurance to the destination port.
- QWhat level of insurance must the seller provide under CIF?
- AUnder Incoterms 2020, CIF requires only a minimum level of cover — by default Institute Cargo Clauses (C) or similar — for the buyer's benefit to the destination port.
- QWho pays for the main carriage under CIF?
- AThe seller contracts and pays for the carriage to the named port of destination.
- QWho clears the goods for import under CIF?
- AThe buyer handles import clearance and duties; the seller clears the goods for export.
- QWhich transport modes can CIF be used for?
- ACIF is for sea and inland waterway transport only.
- QWhat is the difference between CIF and CIP?
- ABoth add seller-provided insurance, but CIF is sea-only and requires only the minimum Clause (C) cover, while CIP covers any mode and requires the higher Clause (A) cover.
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC) and the official rules are copyright ICC. This is a factual reference in logibook's own words — not the ICC rules; always rely on the official ICC Incoterms® 2020 text for the binding rules.